Kissimmee Florida STR advice/property management
Member since 2021 · 3 posts · 7 votes
Kissimmee Florida STR advice/property management
Most Popular Reply
Ryan MoyerBusiness Member
Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 991 posts · 1k+ votesI am both an investor and manager in the Orlando area.
For a lot of investors Orlando is a really poor choice. For some investors Orlando can be a really good choice. If you have a typical mortgage (80% LTV) It's not a cash flow market unless you are willing to spend extensively on theming/upgrades. With theming, it can be done but you still need to weigh it against the saturation even within the theming submarket, which has exploded.
Regarding your questions
1) Saturation is very real here, and the biggest "problem" for owners by far. Not just quantity saturation, but quality saturation (the houses are gettting bigger and better, pushing formerly top-end houses down the list into appearing more mediocre by comparison)
This is my property: https://www.airbnb.com/rooms/52612233
Three years ago I would have said it was a 99th percentile property. Now? Not even close to that. But it still makes me good money. Of course I have a different mortage than you will. I'm happy to share those numbers.
2) Orlando has already declined quite a bit off of the peak RE values. The question is where the bottom is. There's a chance you might be catching it before it bounces back up. Or a chance it's a falling knife that will keep going.
I bought my property for $568k in 2021. Disregarding the theming (IE just comparing the appraisable size/comps of the home) it probably peaked out at around $900k in value during the RE peak, but is probably worth $650k-$700k now (again disregarding the upgrades). So as you can see, almost back down to where it was before the big RE boom, whereas in most STR markets the homes are still 2x the price they were in early 2021 if not more. So maybe that RE decline that's coming for those markets is already built-in here.
Orlando does offer other major long-term advantages like long term demand (will Broken Bow still be a place people travel to in 10 years? Maybe. Will Disney still be a place people travel to in 10 years? Certainly) and some of the lowest regulation risk in the country so long as you buy in the approved areas.
I'm happy to share real world revenue and theming examples as well.
Cosmic Vacations4.9174 Reviews
4 Replies
- 1yJohn O'LearyPro MemberLender · Winter Park, FL · Member since 2021 · 737 posts · 412 votes
Hi Tim,
I'm in Orlando and have a client with a substantial STR portfolio in CF, including about 15 properties in Kissimmee. They also manage additional STRs for local operators. Please feel free to reach out if you'd like to discuss further.
- 1yRyan MoyerBusiness MemberProperty Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 991 posts · 1k+ votes
I am both an investor and manager in the Orlando area.
For a lot of investors Orlando is a really poor choice. For some investors Orlando can be a really good choice. If you have a typical mortgage (80% LTV) It's not a cash flow market unless you are willing to spend extensively on theming/upgrades. With theming, it can be done but you still need to weigh it against the saturation even within the theming submarket, which has exploded.
Regarding your questions
1) Saturation is very real here, and the biggest "problem" for owners by far. Not just quantity saturation, but quality saturation (the houses are gettting bigger and better, pushing formerly top-end houses down the list into appearing more mediocre by comparison)
This is my property: https://www.airbnb.com/rooms/52612233
Three years ago I would have said it was a 99th percentile property. Now? Not even close to that. But it still makes me good money. Of course I have a different mortage than you will. I'm happy to share those numbers.
2) Orlando has already declined quite a bit off of the peak RE values. The question is where the bottom is. There's a chance you might be catching it before it bounces back up. Or a chance it's a falling knife that will keep going.
I bought my property for $568k in 2021. Disregarding the theming (IE just comparing the appraisable size/comps of the home) it probably peaked out at around $900k in value during the RE peak, but is probably worth $650k-$700k now (again disregarding the upgrades). So as you can see, almost back down to where it was before the big RE boom, whereas in most STR markets the homes are still 2x the price they were in early 2021 if not more. So maybe that RE decline that's coming for those markets is already built-in here.
Orlando does offer other major long-term advantages like long term demand (will Broken Bow still be a place people travel to in 10 years? Maybe. Will Disney still be a place people travel to in 10 years? Certainly) and some of the lowest regulation risk in the country so long as you buy in the approved areas.
I'm happy to share real world revenue and theming examples as well.
Cosmic Vacations4.9174 Reviews - Property Manager · Kissimmee, FL · Member since 2019 · 445 posts · 266 votes1y
Hi @Tim Phillips!
I’m a property manager with a diverse portfolio of homes in the Disney/Orlando market. I’m happy to share my perspective on communities and home types in the area. We see many investors who, like you share a love of Central Florida and Disney. They are balancing that with the need to make a solid investment decision.
The key is to think a bit outside the box. The Disney/Orlando market is vast, and it's unrealistic to believe you can buy a home that is already nicely decorated with "typical" theming, in a resort area with hundreds of similar homes -- and expect exceptional performance.
So how do you find/or create uniqueness in this market? We always recommend...
Geographic Location - consider a home in and older resort, closer in to Disney and transform it to a uniquely decorated home. Typically, you can pick up these homes for far less, and if decorated properly they will book for the same rates or even more than a similar home in the newer resorts. Many guests appreciate knowing they won't have to fight traffic to get to the parks.
Location within the resort - Guests appreciate privacy. Look for a home that backs on a forest view or a lake view, or at least a corner lot. Alternately, find a house that's close to the clubhouse so everyone can just walk from the home to the community amenities.
Decor - Make sure your decorator uses a unique approach in every home. Guests appreciate clever and unique touches in the theming, as well as unique amenities in the game room, etc. Those cookie cutter Mickey or Harry Potter rooms don't cut it any more.
Don't overlook the pool area - South or West facing pools mean more sun. Also, Pool amenites such as pool basketball, Four square, Giant Jenga etc. help guests imagine themselves having a Florida experience with their own pool on vacation.
In short, in a saturated market find a way to make your home exceptional, and you can generate decent income while still enjoying the home with your family. If you are seeking purely an investment property, you will want to consider additional markets.
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