Buying short term rental property in Davenport/Orlando (appointed, house)

[annerk]

Parts of Clermont are also serviced by Apopka Gas.

We had our choice and went with gas for the water heater and dryer. After a lot of research it was determined that the heat pump/ac was more efficient using electric in FL.

[salmanalk]

I was seriously considering buying a vacation home and renting it while I am not there to cover the costs. In '07 and mid '08 the numbers just did not work! the prices were too high and by the time you pay all the costs it was just not worth it! Today things a different, you could get great deals on homes and condos, you can check them out on any realtor's site (zipe code 34747 for Kissimmee) you could even get a town home with a pool for $100K!!! but with the financial crisis and people cutting back...the numbers still dont work! Think of any rental as a bonus, don't count on it. I did buy a home towards the end of '08 in a better area with no short term rentals and lock it up while I am not there (I use it about twice a year) it actually worked out cheaper with out the management costs and all other rental related costs. You could get great Condos in great areas for about $100k with minimum monthly costs, go for your Florida home but think about the costs and if you want to deal with the hassle of rentals.

[cfIfan]

I have a number of clients who have bought vacation homes here in Orlando and it can work. BUT, this is sound advice. Dont over stretch yourself. I always advise clients that renting the property is no guarantee and you should be able to afford the property without receiving any income from it.

This is sound advice Salmanalk.

Originally Posted by salmanalk

I was seriously considering buying a vacation home and renting it while I am not there to cover the costs. In '07 and mid '08 the numbers just did not work! the prices were too high and by the time you pay all the costs it was just not worth it! Today things a different, you could get great deals on homes and condos, you can check them out on any realtor's site (zipe code 34747 for Kissimmee) you could even get a town home with a pool for $100K!!! but with the financial crisis and people cutting back...the numbers still dont work! Think of any rental as a bonus, don't count on it. I did buy a home towards the end of '08 in a better area with no short term rentals and lock it up while I am not there (I use it about twice a year) it actually worked out cheaper with out the management costs and all other rental related costs. You could get great Condos in great areas for about $100k with minimum monthly costs, go for your Florida home but think about the costs and if you want to deal with the hassle of rentals.

[salmanalk]

if you wont be using it that often did you consider the timeshare route? very cheap at the moment...

[ETF]

Ok so thinking of purchasing a STR for an investment with another Friend. I take it at best we are looking at maybe?? breaking even? We have a budget for say $250k US. Where should we really be looking? Our agent tells us all these great things but looking at your posts I am losing respect for the man. Are LTR maybe a better investment. Do STR appreciate in value? How much off the 2006/7 highs are we now in July. I take it we have hit bottom?

[cfIfan]

Hi there, well one question i would recommend asking your realtor would be do they specialize in STR mainly. Unfortunatly, and it is sad for me to say that there are alot of unscrupulous agents out there, but he or she may have been advising you based on questions you may have asked and feedback you may have given.

As an agent myself who deas both in STR and LTR and originally being from the UK so having an indepth understanding of the STR market it is really 6 of one and half a dozen of the other. Many people go down the STR route because they want to make use of the property themselves and STR allows them the flexibility to do that. Realistically speaking although you may command a higher rental price based on a weekly rental of a STR it is unrealistic to think you will rent the property for 52 weeks of the year and we are currently seeing many struggling to rent for half of that. Long term rentals on the other hand are usually rented for lower than if you rent a STR out for a full month, but as people are signing a yearly contract you will have someone in the property and it usually averages out at a better rental income. Also, because people are using the property as a home as opposed to a hotel, you wont have nearly as much damage to the property in the course of a year assuming you are checking out properly the tenants.

Your budget would get you an excellent property in a great many communities but it really does depend on the level of flexibility in using the property yourself. Also keep in mind, in a STR if it is not furnished you would need to furnish is and there is alot of wear and tear on furniture.

I hope this helps.

Nick

Originally Posted by ETF

Ok so thinking of purchasing a STR for an investment with another Friend. I take it at best we are looking at maybe?? breaking even? We have a budget for say $250k US. Where should we really be looking? Our agent tells us all these great things but looking at your posts I am losing respect for the man. Are LTR maybe a better investment. Do STR appreciate in value? How much off the 2006/7 highs are we now in July. I take it we have hit bottom?

[Raadghast]

Hi Everyone

Did you go ahead and buy?

What is the market like now for someone to buy a pool home for holiday rental in Davenport?

Thanks

Raadghast

[annerk]

Originally Posted by Raadghast

Hi Everyone

Did you go ahead and buy?

What is the market like now for someone to buy a pool home for holiday rental in Davenport?

Thanks

Raadghast

The short-term rental market is still soft with an oversupply of homes causing rock bottom rates.

[MargusMahar]

Originally Posted by Lorna J

Hi, We currently reside in Scotland, after many visits to Florida we have decided to invest in a Villa/Townhouse in the davenport/Orlando area for short term rental. Does anyone out there have experience in this area, that could give some valuable advice?

Hi Lorna J,

I am a Realtor in Davenport FL and know the area well. I would be glad to assist you with your questions as I work mainly with international buyers and short term rental (STR) properties. Some of the key factors to keep in mind when buying an STR home are your: a) monthly expenses; b) amount of amenities the community offers - people want to stay in a community where is lot to do (ie tennis courts, basketball, pools, etc.); c) closeness to attractions, shopping and restaurants.
These are just few bullet points to bring out.

If you want, I can help you to find a property. Here in Florida, the seller pays the Realtor at closing, so all my services are free to the buyer. Therefore do not hesitate to ask questions.

Happy New Year!

[maison01]

Hello Everyone,

My wife & I are in the process of purchasing a short term rental property in Davenport, FL. The property is located in the beautiful Sandy Ridge Community. We were just in Orlando a few weeks ago visiting several properties & communities with our realtor. We decided to purchase in Sandy Ridge because of the extremely close proximity to all major Disney attractions (10 Minutes) as well as how clean & beautiful the community felt to us. I was wondering if anyone has any feedback they'd like to share about Sandy Ridge whether it be good or bad. We are out of state owners & are putting all our trust in our property management company to care for, maintain, & successfully rent our property. I'd be lying if I said we weren't both scared to death about the unknown level of success we're going to have with our new venture. That said, after much research, we do feel fairly confident with our selection process. The home we're purchasing comes beautifully furnished, in-ground pool/spa, private backyard with Conservation view...I know there's no guarantees in this business, but I sure hope we've given ourselves a better than average chance to succeed.

Please share your thoughts. Any feedback would be much appreciated...Thanks!