All Forum Posts by: Keith Courtney

Jeff -

There are a number of vacation rentals here in Central Florida near Disney World that produce a positive cash flow, and the owners use property managers.  A key ingredient to the positive cash flow is the vacation rental market here is year-round due to Disney, Universal and SeaWorld.  However, I would be remiss to not also say that there a lot of vacation homes here that, even with the year-round market, do not positive cash flow.  The size of a home, its location, the home's amenities, the property manager, etc., all have bearing on the profitability of each vacation home here.

The good news for you is you can look at VRBO, Airbnb and the others and get a good idea what rent you can expect in an area that you are researching.  Creating pro forma statements is invaluable with the rent numbers and with all of the expense numbers.

Keith

Shahram -

I don't blame you for wanting to have a beach home!  Sounds great.

If you ever decide to purchase a vacation home that is not near you, you will be able to manage it.  Most vacation home owners here do not live here.  Many are foreign nationals.  The key is having a good, trustworthy property manager.

Keith

Shahram -

I am in Orlando - home of Disney World, Universal Studios and SeaWorld.  The vacation home market is huge here and year-round.  There is lots of competition, but, if done right, you can do well with vacation home investments here.  This would be a good spot for you to research.

Vacation home owners and property managers use HomeAway/VRBO, FlipKey and others to market their rentals as well as social media.  Two of the better known vacation home resorts are ChampionsGate and Reunion.  Both resorts are within 15-25 minutes of the theme parks, and both resorts offer golf, water parks, etc.  Go to HomeAway or VRBO and do a search for the 2 resorts.  You will be able to see how well some of the rental homes do.

I'll be happy to help you in any way that I can.  We deal in both the buying and selling of vacation homes and in the renting of them.  We see first hand which ones do well and which ones don't.

Good luck,

Keith Courtney

Hi Lynn -

My best advice . . . If you are interested in vacation rentals, come to Central Florida - home of Disney World, SeaWorld and Universal Studios.  Rental demand is year 'round with the biggest rental seasons being around the holidays and during the summer months.  Plus, it's a great place for you to vacation in your own vacation home.  A great time to come is during the winter (except around Christmas - very crowded) when the weather is great and the crowds are much smaller.
If you want to consider this, please feel free to contact me.  I'll be happy to help you in any way that I can.

Keith

Alejandro -

I am in Orlando, but I spend a lot of time in the Kissimmee, FL, area where Disney World is located and thousands of short term rental vacation homes.  If you are interested in exploring investments in vacation homes here, feel free to contact me.  Many of the vacation homes are not good investments, but there are definitely some in certain communities that are.  

You mentioned that you need contacts of mortgage companies, property management companies, insurance brokers, etc.  I can also help you with good contacts in those fields.

The one bit of advice I can give you is do your homework.  Too often vacation homes are bought on emotion - not on pragmatic analysis.  Learn what makes a vacation home in the geographic area of your focus a good investment.  And, find good people and companies that you can rely on for the management, marketing and upkeep of your investment.

Again, I will be happy to help you anyway I can.

Keith  

Hi Ashley -

I am in Orlando. I am deeply involved in the vacation home rental market in Osceola County near Disney World. There is more potential income usually in short term rentals than long term, but there also is an accompanying additional risk. Where to buy and what to buy are key. If you ever explore the vacation market here and have questions, please feel free to contact me.

Keith

Hi Steve -

As you probably know, HomeAway/VRBO offers various subscription levels from Classic to Platinum. In an area where you don't have much competition, the Classic subscription will probably suffice. Here in Kissimmee FL around Disney World there is a lot of competition; therefore, more expensive subscriptions are necessary for successful marketing. I am involved in the rental marketing of a number of vacation homes in the Kissimmee area. The winning formula here is twofold - 1) Each home must offer amenities that make the homes stand out against the competition; and 2) Use the more expensive subscriptions for the increased exposure.

Keith

Kimberley -

I deal a lot in vacation homes here in central Florida around Disney World. There are approx. 27000 short term rentals here. A lot of them are bad investments, but some are very good ones. So to answer your question . . . Yes, vacation homes can be good additions to your property holdings. The key obviously will be to choose the right ones in the right locations. The vacation homes that are the best investments here are the ones primarily in gated communities, they have the amenities that vacationers want (pool, spa, etc.), and they have 6 or more bedrooms.

Feel free to contact me, and I can give you more detail. A lot of the variables that make a vacation home here a good investment will apply to vacation homes anywhere.

Keith Courtney

Hi Susan -

When I speak of bad investments, I am speaking about vacation rental homes that don't produce a good return on investment. Many in fact actually lose money - the rental income falls short of covering all expenses.

The vacation homes here in central Florida that are good investments are usually found in gated communities and, in most cases, are a minimum of 6 bedrooms. There is lots of competition for rental bookings that are 3-5 bedrooms - not as much for 6 bedrooms and up. The rental rate is so much better for 6 bedrooms and up, yet the costs of operating a larger home are not proportionately higher as compared to the smaller homes.

As far as the Orlando vacation home area being a buyers' market, it depends on the vacation home community. Some communities are a buyers market. Others are not. The good deals in the good communities are getting harder to find.

Keith

Micki -

If you want to look for an investment/vacation home in sunny, warm central Florida, I'll be happy to help you in any way I can. A few quick facts about our vacation home market - Because of Disney World, Universal Studios and SeaWorld, millions of tourists from all over the world come to central Florida each year. Currently, there are about 27,000 short term rentals here. Many are bad investments, and there are some that are very good investments.

The keys for finding good vacation home investments here are acquiring a good understanding of the market and performing thorough financial analysis of each property you are contemplating purchasing. These keys hold true for anywhere. Too many people purchase on emotion without learning a market and performing a thorough analysis.

Good luck!

Keith Courtney