A STR in Orlando Could Be Your Savior in 2026/2027

A STR in Orlando Could Be Your Savior in 2026/2027

Realtor · FL · Member since 2020 · 227 posts · 101 votes

The amount of inventory hitting the Four Corners, Reunion, and ChampionsGate areas is incredible. I am seeing more properties come on the market every day, including a growing number of short sales. Some owners are selling at major losses on properties they purchased only a few years ago, and several of them are practically brand new.

If your goal is to increase your income and potentially benefit from additional tax deductions, now may be a good time to consider a short term rental in Orlando.

Some of the best performing Airbnbs in the 34747 ZIP code, where many communities allow short term rentals, can bring in more than $600 per night with occupancy rates around 60%. At that level, a property could generate roughly $130,000 in gross annual revenue and potentially come close to $100,000 after management and operating expenses, but before the mortgage, property taxes, insurance, and other ownership costs.

When some of these properties can be purchased for around $500,000, the potential return starts to look very attractive. DSCR loan rates are also around 6.5% in some cases, depending on the borrower, property, and lender.

Orlando continues to be one of the most visited destinations in the country. Even though the short term rental market has slowed from its peak, there is still plenty of room for future growth. Disney and Universal continue investing heavily in new attractions, park expansions, and updated experiences that should bring even more visitors to the area.

I visit the parks almost every week, and they are still busy, even on weekdays. Attendance may be slightly lower than it was at its peak, but the parks are far from empty. Once more of these new attractions are completed, I believe demand could become even stronger.

For a long time, I advised many clients to be cautious about Orlando’s short term rental market. Recently, however, prices have been dropping quickly, more motivated sellers are entering the market, and the number of short sale opportunities is growing. Because of that, I believe some of the best buying opportunities may still be ahead of us.

Of course, not every short term rental will be profitable. The purchase price, location, community restrictions, amenities, management, financing, and operating costs all matter. Every property needs to be evaluated carefully based on realistic numbers.

1Reply
1,158 views

Most Popular Reply

Andrew SteffensBusiness Member
Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
3w

Can you share an example? I am still very bearish on Orlando. I totally believe people are shortsaling and there are "deals" but I am not sure you can reliably buy a $500k property that is generating $130k gross in Orlando at this moment.

See this reply in the discussion

21 Replies

Jump to latestLatest
  • New to Real Estate · NY · Member since 2026 · 22 posts · 17 votes
    3w

    I am a brand new investor looking to kick start my real estate journey. Kissimmee was actually on my radar. I am definitely curious on this.

  • MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
    3w

    “At that level, a property could generate roughly $130,000 in gross annual revenue and potentially come close to $100,000 after management and operating expenses, but before the mortgage, property taxes, insurance, and other ownership costs.”

    Mortgage, taxes, insurance and other ownership costs can be significant. How much are the $600 per night properties selling for?

  • Diana KhanPro Member
    Attorney · 10451 Mill Run Cir #755 Owings Mills, MD 21117 · Member since 2024 · 479 posts · 174 votes
    3w
    Quote from @Adrian Lammersdorf-Scioll:

    The amount of inventory hitting the Four Corners, Reunion, and ChampionsGate areas is incredible. I am seeing more properties come on the market every day, including a growing number of short sales. Some owners are selling at major losses on properties they purchased only a few years ago, and several of them are practically brand new.

    If your goal is to increase your income and potentially benefit from additional tax deductions, now may be a good time to consider a short term rental in Orlando.

    Some of the best performing Airbnbs in the 34747 ZIP code, where many communities allow short term rentals, can bring in more than $600 per night with occupancy rates around 60%. At that level, a property could generate roughly $130,000 in gross annual revenue and potentially come close to $100,000 after management and operating expenses, but before the mortgage, property taxes, insurance, and other ownership costs.

    When some of these properties can be purchased for around $500,000, the potential return starts to look very attractive. DSCR loan rates are also around 6.5% in some cases, depending on the borrower, property, and lender.

    Orlando continues to be one of the most visited destinations in the country. Even though the short term rental market has slowed from its peak, there is still plenty of room for future growth. Disney and Universal continue investing heavily in new attractions, park expansions, and updated experiences that should bring even more visitors to the area.

    I visit the parks almost every week, and they are still busy, even on weekdays. Attendance may be slightly lower than it was at its peak, but the parks are far from empty. Once more of these new attractions are completed, I believe demand could become even stronger.

    For a long time, I advised many clients to be cautious about Orlando’s short term rental market. Recently, however, prices have been dropping quickly, more motivated sellers are entering the market, and the number of short sale opportunities is growing. Because of that, I believe some of the best buying opportunities may still be ahead of us.

    Of course, not every short term rental will be profitable. The purchase price, location, community restrictions, amenities, management, financing, and operating costs all matter. Every property needs to be evaluated carefully based on realistic numbers.

    If you would like help running the numbers on a property, or if you want to join my free list of short sales and investment opportunities within Orlando’s short term rental areas, send me a message. I would be happy to walk you through everything.

    @Adrian Lammersdorf-Scioll, from working with investors, one thing I would be very careful about here is making sure the STR use actually works on the specific property, not just in the ZIP code. I would want to check the HOA or community rules, local rental requirements, insurance, and whether anything changes for the buyer after closing. I've seen deals look great on the income side, but one restriction or approval issue changes the whole plan.

    The short sale piece also adds another layer. I would want to understand the lender approval process, the condition of the property, and what the buyer is really taking on before getting too excited about the discount. The lower price can create a good opportunity, but only if the property still works after all of those pieces are checked. I’d be glad to stay connected, @Adrian Lammersdorf-Scioll. I always enjoy seeing how people are finding opportunities when a market starts to shift.

  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    3w

    Can you share an example? I am still very bearish on Orlando. I totally believe people are shortsaling and there are "deals" but I am not sure you can reliably buy a $500k property that is generating $130k gross in Orlando at this moment.

    • Mike GrudzienPro Member
      Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
      3w
      Quote from @Andrew Steffens:

      Can you share an example? I am still very bearish on Orlando. I totally believe people are shortsaling and there are "deals" but I am not sure you can reliably buy a $500k property that is generating $130k gross in Orlando at this moment.

      I totally agreed with Andrew!

    • Ryan MoyerBusiness Member
      Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 991 posts · 1k+ votes
      2w
      Quote from @Andrew Steffens:

      Can you share an example? I am still very bearish on Orlando. I totally believe people are shortsaling and there are "deals" but I am not sure you can reliably buy a $500k property that is generating $130k gross in Orlando at this moment.

      It's totally doable, but with a lot of caveats.

      This is my property: https://www.airbnb.com/rooms/52612233

      It has cleared $130k every year. You probably can't get in on one that size at $500k, but at $600k it's very doable. Then of course you need to spend $100k on theming.

      But there are more caveats as well, the biggest of which is that expenses are extremely high in this market. Everyone wildly underestimates expenses in this market. Right off the bat you've got the $500/mo HOA fee. Your water bill will be $250/mo. Electricity depending on the season $500-$800/mo.

      But that's only the start because the other big expenses is maintenance/supplies/wear and tear. These are big houses, high guest counts, high occupancy, with a lot of kids and a lot of tired parents. The carpets have to be steam cleaned more often. The couches replaced more often. Pool lounge chairs, outdoor dining set, bar stools are all going to need to be replaced regularly. And then the towels and linens. You need to have 60 towels available in these houses and on some checkouts there are only going to be 30 left and Airbnb won't let you do anything about that. Supplies of course with these large guest counts you're going to burn through fast as well.

      I spend more on my Orlando property per month than I do per quarter on my Southern Utah property and not by a little bit.

      And then there's the simple fact that people are just theming more and more of these houses better and better, so you're going to have to keep refreshing with major theming upgrades every few years or get left behind. Of course, some of this is true elsewhere too. Themed properties in Bradenton are still fairly new but they are expanding fast and that will continually push rates down as more and more people pile into it and saturate out the first movers.

      So yes, it is VERY doable to buy one of these Champions Gate 8br Maui floor plan houses at $580k or whatever right now, put $100k theming into it, and hit $130k in revenue. But I don't think that's unique to this market, and you can do it in other markets without $500 HOA fees and $800 electric bills and super high maintenance costs.

      And if you're not dropping $100k on theming don't bother. Anything less than uber themed these days is getting left behind.

      The advantages to Orlando are completely safe regulation (these are essentially commercial neighborhoods built specifically for STR that have virtually zero future regulation risk) and of course the biggest reason people buy in Disney....personal use. We love Disney and I will admit it is pretty freaking cool to be able to say that I own an X-wing.

      If ROI is the main concern though, your best bet is avoiding any market anyone here has ever heard of and taking that $580k + $100k reno into somewhere quiet where you can build the best STR on the market with it and know that 100 people aren't going to have copied you and saturated that out by the same time next year.

      Cosmic Vacations4.9172 Reviews
    • MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
      2w

      Thank you for providing a working prospective which as I suspected would be a hard no for me. Your place is amazing and although the first handful of pictures nearly gave me a seizure I'm guessing a large group with a bunch of kids would love it. ;)

    • JD MartinBusiness Member
      Moderator
      Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
      2w
      Quote from @Ryan Moyer:
      Quote from @Andrew Steffens:

      Can you share an example? I am still very bearish on Orlando. I totally believe people are shortsaling and there are "deals" but I am not sure you can reliably buy a $500k property that is generating $130k gross in Orlando at this moment.

      It's totally doable, but with a lot of caveats.

      This is my property: https://www.airbnb.com/rooms/52612233

      It has cleared $130k every year. You probably can't get in on one that size at $500k, but at $600k it's very doable. Then of course you need to spend $100k on theming.

      But there are more caveats as well, the biggest of which is that expenses are extremely high in this market. Everyone wildly underestimates expenses in this market. Right off the bat you've got the $500/mo HOA fee. Your water bill will be $250/mo. Electricity depending on the season $500-$800/mo.

      But that's only the start because the other big expenses is maintenance/supplies/wear and tear. These are big houses, high guest counts, high occupancy, with a lot of kids and a lot of tired parents. The carpets have to be steam cleaned more often. The couches replaced more often. Pool lounge chairs, outdoor dining set, bar stools are all going to need to be replaced regularly. And then the towels and linens. You need to have 60 towels available in these houses and on some checkouts there are only going to be 30 left and Airbnb won't let you do anything about that. Supplies of course with these large guest counts you're going to burn through fast as well.

      I spend more on my Orlando property per month than I do per quarter on my Southern Utah property and not by a little bit.

      And then there's the simple fact that people are just theming more and more of these houses better and better, so you're going to have to keep refreshing with major theming upgrades every few years or get left behind. Of course, some of this is true elsewhere too. Themed properties in Bradenton are still fairly new but they are expanding fast and that will continually push rates down as more and more people pile into it and saturate out the first movers.

      So yes, it is VERY doable to buy one of these Champions Gate 8br Maui floor plan houses at $580k or whatever right now, put $100k theming into it, and hit $130k in revenue. But I don't think that's unique to this market, and you can do it in other markets without $500 HOA fees and $800 electric bills and super high maintenance costs.

      And if you're not dropping $100k on theming don't bother. Anything less than uber themed these days is getting left behind.

      The advantages to Orlando are completely safe regulation (these are essentially commercial neighborhoods built specifically for STR that have virtually zero future regulation risk) and of course the biggest reason people buy in Disney....personal use. We love Disney and I will admit it is pretty freaking cool to be able to say that I own an X-wing.

      If ROI is the main concern though, your best bet is avoiding any market anyone here has ever heard of and taking that $580k + $100k reno into somewhere quiet where you can build the best STR on the market with it and know that 100 people aren't going to have copied you and saturated that out by the same time next year.

      I don't think anyone who doesn't have property here grasps some of the consumable costs. My place is a thousand SF and several bedrooms smaller than yours but totally on the same page with towels and other things that most people don't think of as consumables. I know for a fact that the towels often go to Disney - especially the pool towels, which we can see on driveway cameras - and never come home!

      On a side note, I often take a look at your place (I have it bookmarked) because you're on here and not far from me and a known entity and even I can see that your calendar has a lot of holes in it that 2 years ago wouldn't be there. IE I can see you still have Thanksgiving & Christmas open, and for me those were booked before I ever got out of the summer. Last year was the first time I had vacancy for either one (Thanksgiving). I'm guessing you are getting a lot more last minute bookings than you got in the past. 

      There are some good deals in Champion's Gate right now though for someone willing to drop the cash to do the theme out. There's actually a few fire sales in there because there's not a lot of homeowner demand with the high HOAs & property taxes. 

      Skyline Properties
      View Page
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    3w

    34747 is a disaster area right now. Virtually nothing for sale right now at market prices is going to make any money. There's way too much inventory and nightly rates suck to keep occupancy up. I border 34747 right down the street. There's still new construction that was already in the pipeline still going up everywhere and it is going to take some work to get through this. No offense, but I would not take "buying opportunity" unsolicited posts from a local realtor at face value. You want to gin up business - I get that - but most everyone following your "advice" there that doesn't know the true state of that market right now is going to get slaughtered because prices, rates, inventory and costs (operations & renovations) are completely out of whack with each other in this market.

    Skyline Properties
    View Page
  • Property Manager · Melbourne, FL · Member since 2019 · 263 posts · 125 votes
    2w

    We operated in Veranda Palms. Curious what size home that $30k expense estimate is based on? With the larger houses, cleaning, utilities and replacing worn-out stuff add up fast. I'd want to see a full year of actual bills on that one.

  • Kyle MccawBusiness Member
    Property Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes
    2w

    I own in Windsor Hills so I’m in the same pocket you’re talking about.

    Inventory always looks heavy this time of year. September is the slow month. Back to school, heat, hurricane season. A lot of 2021–22 buyers also get tired and list. That doesn’t mean demand fell off a cliff.

    The $600/night at 60% number is doable, but it’s not what a typical 5-bed does. Most of those land a lot lower. The houses that still work are the ones built for a multi-gen family, not just a pool and beds.

    Ours is 5/5, enclosed heated pool, themed kids rooms, and a real arcade. We keep 2–3 weeks a year for family and friends and still do about $120k gross. Location helps — we’re a couple minutes from Disney — but the house has to feel like the trip, not a place to sleep between park days.

    Agree prices have come in and there are motivated sellers. Just underwrite the actual house. Purchase price, insurance, HOA, and whether guests will pay for it matter more than how many listings hit the MLS this month.

    McCaw Property Management4.4905 Reviews
    • JD MartinBusiness Member
      Moderator
      Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
      2w
      Quote from @Kyle Mccaw:

      I own in Windsor Hills so I’m in the same pocket you’re talking about.

      Inventory always looks heavy this time of year. September is the slow month. Back to school, heat, hurricane season. A lot of 2021–22 buyers also get tired and list. That doesn’t mean demand fell off a cliff.

      The $600/night at 60% number is doable, but it’s not what a typical 5-bed does. Most of those land a lot lower. The houses that still work are the ones built for a multi-gen family, not just a pool and beds.

      Ours is 5/5, enclosed heated pool, themed kids rooms, and a real arcade. We keep 2–3 weeks a year for family and friends and still do about $120k gross. Location helps — we’re a couple minutes from Disney — but the house has to feel like the trip, not a place to sleep between park days.

      Agree prices have come in and there are motivated sellers. Just underwrite the actual house. Purchase price, insurance, HOA, and whether guests will pay for it matter more than how many listings hit the MLS this month.

      Being inside a resort has some built-in advantages over others like me who are just in a neighborhood. I have an easier time selling in general (bigger market) but you have a lot to offer guests beyond just the house itself because of the resort.

      Skyline Properties
      View Page
  • Realtor · Orlando · Member since 2019 · 18 posts · 10 votes
    1w

    I’ve been investing in and operating STRs in the Orlando area for several years, and I’m also a Realtor who works with investors buying and selling vacation homes here.

    I think the Orlando STR market is a little more complicated than simply looking at a projected $100K+ gross revenue number. There are definitely properties that can perform very well, but the numbers can vary a lot depending on the community, location, bedroom count, amenities, condition and how the property is managed.

    When I'm looking at a property for myself or helping a client evaluate one, I like to start with the actual rental history of comparable homes. Then I run the numbers after HOA, taxes, insurance, utilities, pool, maintenance, management and other expenses. That gives you a much better idea of what you're really buying.

    One thing I’ve noticed over the years is that buying the right property is just as important as having a good management and pricing strategy. Two homes that look almost identical on paper can have very different results.

    I’m happy to share what I’m seeing in the Orlando/Kissimmee market if anyone has a specific property or resort they’re considering. I’m in this market as an owner and operator as well as a Realtor, so I’m happy to share what I’ve learned.

  • Divin KanyamaBusiness Member
    Accountant · Seattle, WA · Member since 2025 · 342 posts · 127 votes
    1w

    @Adrian Lammersdorf-Scioll This is a good example of why changing market conditions can create opportunity, but also why investors need to look beyond the headline revenue. Rising inventory, motivated sellers, and short sales may produce attractive entry prices in the Orlando resort corridor. At the same time, that added supply can increase competition for guests and put pressure on nightly rates and occupancy, so I would underwrite each property using conservative assumptions rather than the performance of the top listings.

    The difference between gross revenue and actual cash flow is especially important here. Management, platform fees, cleaning, utilities, furnishings, repairs, pool and landscaping costs, HOA dues, insurance, property taxes, licensing, and periodic replacement of furniture can materially change the return before debt service is considered. I would also verify community restrictions, historical booking data, seasonality, comparable-property supply, and whether the projected rent supports the loan under the lender's own underwriting—not simply assume that a DSCR product makes the deal workable.

    Short sales can offer value, but buyers should be prepared for lender approval, uncertain timelines, deferred maintenance, and limited seller concessions. Any tax benefits should be evaluated with a tax professional based on the owner’s participation, personal use, and broader tax situation rather than treated as guaranteed. I agree that the better opportunities may still be ahead, but the winning properties will likely be those purchased with a margin of safety and capable of performing under realistic—not best-case—revenue assumptions.

  • Alex LawsonPro Member
    Investor · Columbus GA · Member since 2021 · 20 posts · 14 votes
    1w

    We only have 1 in the area in Story Lake and this has been our best year yet. It's kinda crazy that our income is going up but prices are going down.

  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    1w

    Adrian, I think the biggest point here is that STR opportunities always come down to the underwriting.

    A strong tourism market can create opportunity, but the property still has to work after accounting for the full picture: purchase price, financing, insurance, taxes, management, utilities, maintenance, furnishing, platform fees, and local STR rules.

    Gross revenue numbers can look very attractive, but the number that matters is what is actually left after all operating costs and reserves. Two properties in the same market can perform very differently depending on location, amenities, management, and purchase basis.

    I’m from Florida as well, and one thing I’d always encourage investors to do is look beyond the market story and make sure the individual property makes sense under conservative assumptions.

    From the tax side, STRs can also have unique planning considerations depending on average stay length and the investor’s level of participation. Depreciation, cost segregation, and material participation can all affect the after-tax return.

    Feel free to DM me, I'd be happy to send over our Turn Key Rental Analyzer and a few STR tax resources that may help investors evaluate Orlando opportunities.

    INVESTOR FRIENDLY CPA®5241 Reviews
    TaxMD® | Tax Planning Software
Join the conversationCreate a free account to reply, vote on answers and follow this thread.