All Forum Posts by: Clark Thornton

Right now, I’m open to a few markets that fit my buy box — Memphis, Kansas City, Indianapolis, parts of Ohio, and Michigan — but I’m also really interested in areas near military bases. As a veteran, I’ve seen how consistent tenant demand and stable employment in those areas can make for strong, reliable rentals.

I’m still in the research phase and trying to narrow down where to take that first step. Have you (or anyone here) had experience investing near military installations or working with PMs who handle that kind of tenant base? 

Orlando/Kissimmee is a very tough market. In my opinion its a 1 trick pony, the vast majority of travelers are coming in for one reason and one reason only, the parks. If they increase price, or airfare goes up, or anything you will be severely affected. The other issue is a massive oversupply of inventory in the area. At least twice per month I have new clients call me and think they have a super good idea to buy an STR near the parks. Its not a bad idea, in fact its a good idea. Such a good idea that way too many people do it and its lead to the oversupply issue. The only way to get bookings is compete on price and its caused a race to the bottom. There still are properties at 3% rates and bought at 2019 prices and you simply cannot compete with them. It is actually great that you are breaking even despite 8.6% rate, I think you should continue to ride out break even until you can refi out hopefully into something in the 5-6% and then you can finally hopefully cashflow. For anyone who has not bought yet, there are plenty of other nearby markets that can be profitable. Good luck!

I live in Kissimmee and have long-term rental in the area, and I agree with most of the analysis from @Ryan Moyer. However, I am more pessimistic about the demand for STR picking up, even over the medium term (5 years). One option you may have is to look for an equity partner with a longer-term investment horizon (someone who has some years before retirement) and is willing to ride out the storm. Another option would be to refinance, as rates fall below your current 8.6%.

Also, it's important to finely scrutinize your expense elements, beside the cleaning, including your insurance and taxes. On the insurance, for example, I have found that unbundling peril and personal liability have saved me some dollars. You may also want to challenge your tax assessment, with the hope for some adjustments in your favor. 

Finally, since you have very few degrees of freedom on the income and expenditure nexus, you may want to pay particular attention to preventive maintenance to help avoid getting hit with a big capital cost item.   

Quote from @Clark Thornton:

Hi Jamiu, do you guys only do STR or do you have investors that own property and like to put tenants on 12 month leases?

Good question, from my side. I often come across both types: investors focused on STR opportunities as well as owners who prefer traditional 12-month leases. If that's something you're interested in exploring, feel free to DM me and I can share more details.

"Good question — from my side, I often come across both types: investors focused on STR opportunities as well as owners who prefer traditional 12-month leases. If that’s something you’re interested in exploring, feel free to DM me and I can share more details."

Hoping to get some insight on this topic as well.  We're in the attractions area of the Orlando-metro. Highly oversaturated and looking to diversify across Florida. 

I’m an investor and Cash Buyer in Central Florida. I’m from Orlando, buying in Orange, Seminole, Volusia, Lake, Polk, Marion counties and more .

[email protected]