The TRUTH about owning a Florida Vacation Rental
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- čas přidán 19. 06. 2024
- Have you ever dreamed of owning a vacation rental home in Florida? Disney Orlando Vacation Rentals can make serious $$ and Florida Beach condo rentals are some of the most popular rental homes to invest in. BUT... there can be hidden fees and serious costs involved that many people don't think about.
We break down the numbers on which is a better investment for you to own: A Disney vacation home or a Beach house/condo, with Special guest, Valiant Broussard from St. Augustine/Jacksonville.
0:00 - Intro
01:15 - Beach condo expert
03:06 - How much are beach condos in Florida
04:55 - How to get a Mortgage on a vacation condo
07:55 - Disney vacation rentals for sale
13:10 - Cost of owning a vacation rental in florida
18:40 - Monthly payment analysis of orlando rental home
19:30 - AirBnb rent prices for Florida rental property
22:48 - Beach house in Florida
26:01 - Best Strategies
From Disney condos to 12 bedroom single family home rentals, there are numerous options you can purchase and rent out through AirBnb, VRBO, and vacation home rental websites- but the actual take-home-pay from these investments can sometimes just be "break even".
Beach-front rentals in Florida are booked solid through the summer of 2021, as the BOOM of travel is approaching, and with Orlando's international terminal C opening up in the next year, its quite possible we will see more than 100 Million visitors to Central florida annually.
If you are thinking of buying a vacation rental property in Central Florida and want to find out what the management costs, taxes, HOA, and other fees would be for a particular property, or just compare this type of Rental to a long-term investment rental property, Give Justin a call at 407-808-3695
To reach Valiant for Jacksonville Florida and St. Augustine Beach properties, email valiantbroussard@gmail.com
Subscribe to this channel and email me with your search criteria to stay in the know. Justin@TheOrlandoPA.com
Justin Pekarek
Broker/Owner
Orlando Property Advisors
Top 100 Realtor in all of Orlando 2020
Orlando Realtor’s “Top 20 under 40” Realtor 2019
Tom Ferry & Bomb Bomb Top Ten Video Influencer 2018
Over $80 Million sold
Lake Nona Resident and Specialist
Text/Call (407) 808-3695
Justin@TheOrlandoPA.com
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#DisneyVacationHome
#BeachRentalFlorida
#RealEstate
Great content as it always is from this channel. I was wondering if you have a more up to date disney/beach comparison on these vacation rental scenarios!?
Thanks yes the market has changed for both long term rentals as well as STR just in the past 6 months, but the same principles hold true, larger and quality units rent for more avg nightly rates, thus bringing more profit.
Great video, I recently stayed at a property in Davenport (solara) for our family vacation, now I am here looking at your video so we can buy an investment property over there. Thanks for all the insight.
once the International terminal opens up at the Airport, this area will boom futher... let's find you a good spot to call your investment/vacation villa for years to come ;-)
Great video! I'm looking to purchase my first rental property with about 55k down and I'm not sure where in Florida I should look.. I'd prefer a short-term rental (airbnb, etc) close to the beach that I could visit occasionally, but the end goal is to profit as much as possible so I'm open to hearing other options. Thank you!
Hey! Thanks for watching. I've had quite a few investors reach out and because we are super honest sometimes the rental amounts you see on the smaller condos or townhomes are not great. Its just a matter of looking at the purchase price of $300k-$400k and determining with mortgage broker what down payment makes sense, given the interest rate (4.5% or higher now) and what rental income you expect to receive (after management costs, cleaning, repairs, etc). Plus you would get to use it for yourself as well. Clearwater/tampa/st pete is amazing but getting very expensive. Jacksonville/new smyrna/cocoa beach might be a better option to stay in budget. We can connect you with a local expert in those areas to dive deeper. Justin@TheOrlandoPA.com
Very informative 👏. I'm a Jamaican who loves Florida and is looking forward to owning a property there. New subscriber here
Can't wait to get back to traveling to the islands more, such a short flight from central florida. Especially when the new terminal C opens up at MCO, for additional international routes. Thanks for watching!
@@OrlandoPropertyAdvisor Happy travelling😀, I'm going to Miami for my bday in January.
Cool video! 😊
Thanks for watching! Prices of Disney area vacation rentals are rising quickly now.
I’ve recently rented an Airbnb in Orlando and got the spark to invest in the central Florida area. This video is very informative. As I would like to invest in a property that I could use from time to time and rent when not in use. I would love to see a listing and run the numbers.
The Disney machine is growing strong! Despite prices of STR's going up quite a bit, there is still profit on the back end when you pick the right ones. Interest rates on investment loans are trending in the mid 4's right now. Happy to share my spreadsheet on avg nightly rental analysis vs. monthly payment as well as some listings that fit the profile. Email me Justin@TheOrlandoPA.com
I purchased a 3 bed 2 bath pool house, near Disney World for $150k in 2010, sold it in 2020 for $250k. 2 years later, it’s now worth over $400k ! You never know what’s around the corner !
Yes I have some sellers remorse myself after selling one house for $640k that is now worth $900k easily... but hindsight is 20/20. Should be some deals on the horizon next 6-12 months as the market settles a bit
I bought my house in st Pete before Covid, sold it for 225,000 and it resold for 333,0000. Sucks lol
I just bought in PCB, FL for 250k got a 2 bed 2 bath condo, does not have to be “on the beach” can be walking distance… all depends on how much you purchased the property for and your HOA fees and rules… some HOAs are ridiculously expensive and some are relatively cheap in comparison.. PCB condos- this particular property grosses 30-35 k… and the overhead is 15k.. and the community offers tennis courts and pool… I’d go for the beach front if given the choice..o would suggest talking to the local management companies in the area before buying.. they usually know the local market and what rents
You’ve done the research! I agree with this statement
@Ian Lord. What's a PCB?
@@danacaro-herman3530 panamacity beach Florida
Great video we are retiring in about 5 years and looking to buy a second home in Florida to save on taxes on our pensions. We live in an expensive Northern State and would like to use the condo / townhouse primarily for the winter months and rent it during the warmer month. We were thinking Kissimmee would be a good area due to Disney or downtown Orlando. The beach never crossed our minds because the thinking was you can only rent those properties during the summer months and we definitely cannot afford beachfront but a 10 minute walk to the beach may be an option. Thanks for sharing.
Perfect! Snow-bird life is the best- just have to show 6 months and 1 day of residency to get the tax savings. Kissimmee is HUGE, and there are new parts of Clermont south, Davenport, Winter Garden, that are growing well and still good access to disney as well as other things orlando.
Great vid! Live in PA, invest up north but would love to connect to get a STR near the beach. Looking for a great PM and realtor as well!
The market is softening in some places so it’s a good time to hunt. Email me your wish list to justin@TheOrlandoPA.Com and will see which beach town works the best for your budget and needs
Timing is everything in these markets , if you bought around 2010 you've done well, prices seem too high today for a return on renting
Gotta buy location and quality when price per foot is high.
I would choose the Orlando Disney area.
What is your opinion on cape coral Florida for a vacation rental? My family rents there. We like that it a short drive to Sanibel island and ft meyers beach.
I do like that area for retirees as well as vacationers, just have to check if STR is allowed in a specific neighborhood due to HOA restrictions. Puts you closer to south florida west coast beaches without being INSANE naples pricing
What are you thoughts about Sarasota, Bonita, Naples? Ive been running numbers…not that easy to find cash flowing short term rental condo. Any thoughts? Much appreciated.
We looked at siesta key and Sarasota for a beach condo and the prices have gotten insane, however demand for rental there is still super high. I think finding meaty cash flow places you have to go bigger in size to get the $300/night in rent, thus $100k or more gross yearly
If you can afford to buy a winter condo in Fla. Go for it. If you think that you can get a condo that pays for itself don't bother. (Been there done that).
exactly. I remember when the Vacation condos were $150k and the larger homes were $500k- at nearly double the prices, it is tough to justify. I'm starting to see price reductions on some of these listings in the STR vacation zone- let's stay tuned for deals!
Real state concept, less is more!
location location location.. and right floor plan. No matter beach or disney.
Ponte vedra Beach is 2.3 to 3 hours drive easily.
Beach. Ofcourse
Great video, I want to market snowbirds for my rental house in Hamptons States -Davenport, how i can contact then, if you know where to market, the house is ready in VRBO bu I dont have bookings lately. Perhaps as you mention in your video I should get a House in Sarasota.
Marketing to a specific area can sometimes be achieved with paid ads, geo-targeted. But realistically are people from these up north areas going to pick YOUR rental over others nearby? Does it look the best and priced right? no matter what type of STR you own, it needs to STAND OUT from the crowd. Sarasota is expensive. Try punching up the interior design of the unit and take better photos. Get more reviews. Add some theme rooms. then you'll get more bookings.
Do you have a more updated video for the boca or Delray area? I'm looking to cash buy with up to $600 hoa.
Unfortunately I dont, but I have been on the lookout for STR's in the sarasota/siesta key/longboat key area and they are still ridiculously expensive. In Orlando, some of the larger homes are beginning to correct down a bit especially if they need work, and don't have the rental income history to show. Expect to pay $225/sq foot for those homes ($675k-$800k) to obtain the $100k gross rental income per year.
So I m looking at a conodo for me to use 3-6 months and rent the other in the Orlando/ Disney area
Vista cay, near I-drive and dr phillips would be a great choice. Email me and I’ll send you a breakdown plus others
Does anyone know if there's a single vacation management company that manages condos in many of the major vacation areas? I'm hoping to find a single network that covers tons of areas so that maybe you can trade some of your owner date reservations at your "home" condo for different areas so I can go to different places each time. Kind of like a time share program but where you actually own one or more condos. Does this exist? Because it should.
Cool idea, and there are some larger vacation rental management companies that manage homes, condos, and townhomes by the hundreds in all the popular neighborhoods near Disney like reunion, chanpionsgate, Windsor hills, and more. What I’ve learned though is, bigger is not always better for the owner profit and guest experience when it comes to vacation rental management. And as far as trading vacation time, you can book internally with the owner and skip the Airbnb markup, while your other unit stays rented out.
Hello
I was looking to invest in the Davenport area. My family and have stayed in the solterra resort. Would you recommend it as an airbnb rental investment?
We have had multiple investors we’ve toured through the best short term rental homes and townhome/condos of championsgate, Davenport, and kissimmee 34744- each one has pros and cons. I find that the larger 6-8 bedroom homes are performing better as far as ROI. Happy to do a zoom call and dive deeper into the numbers to show you what some of our clients are netting after all management fees
Looking at investing in vacation home in Florida about Q1 or Q2 of next year....Trying to figure out if we want to be closer to the beach Cocoa beach possibly or closer to Disney Kissimmee area. The idea would be for me and my family to use it for vacations but also set up for an AirBNB for it to pay for itself and rental income. We live in Seattle and need to be able to enjoy the sun whenever we choose to. Any recommendations that would bring at least an estimate of 80% of the year rented out? (250-550K budget). We plan on visiting Florida after the Holidays to take a look at some areas.
We live in lake Nona and some of our friends bought cocoa beach condos, they do well as does Melbourne but they aren’t as popular as say west coast beaches of Florida like Clearwater down to longboat key
For Disney area there are some new vacation homes being built as well as top performing rentals to buy and spruce up
Same boat here! We're in the Seattle area and looking for vacation home in Florida. Can't decide on Orlando or the beach!
This was a great video. Im. New Yorker, I have an air bnb in Jersey that is doing very well and im looking to now invest in Florida, ideally Orlando or Jacksonville. I prefer to stay away from HOA and CDD fees. Would you be able to help? Thank you
There are No-HOA homes you can rent out Short term, however you might find them to be "off the beaten path" or lacking the amenities and location close to the parks that tourists coming to Orlando want. That being said yes we can help you find such a property. Email us Justin@TheOrlandoPa.com
@@OrlandoPropertyAdvisor Great, thank you so much!
@@OrlandoPropertyAdvisor So you're saying that WHEREVER I buy a condo in Florida where's there's a HOA I would not be allowed to rent it via Airbnb or lease it out on a short-term basis??
@@lynnpacheco6656 nope there are short term rental zoned areas where it’s allowed such as parts of kissimmee, and championsgate in Osceola county near Disney as well as most all beach condos allow. We just have to confirm with each listing
My sister and I are selling property in Saint George Utah, looking to do a 1031 exchange for either one or two AirBnb properties but are torn between Orlando/Kissimmee or Joshua Tree CA. We will probably have a budget of around 700k. Do you recommend splitting that budget into two properties or putting it all into one?
A few years ago when prices were lower and interest rates were lower i'd say split it but now that rates for investment loans are in the high 4's and low 5s it might be smarter to borrow less (if anything at all) and this price can get you a larger 6-8 bedroom home that if well appointed could rent for $350/night, thus bringing nice gross rental income. If you wanted to split it, the down payment on each loan should help them both still cash flow but either way need to shoot for the larger homes not condos or smaller townhomes. Premium property attracts premium customers with premium rent. let me know If you want to dive deeper and browse real properties with actual rental examples and fees - Justin@TheOrlandoPA.com
We got a heloc from our primary residence and bought a vacation home in Kissimmee ( 10 min from Disney) to rent it out. I am now trying to refinance it so can I pay off the heloc and use it to buy another rental. Do you know about a bank that can help me with that ?
The BRRR method in effect :) Interest rates are going up to 4.5%-5%+ for investment loans. I do know of a mortgage company that can do no-income-document loans for rented out properties as long as they are cash-flowing. You can put it in an LLC too if that is already formed. Email me Justin@TheOrlandoPA.com
OR have a yearly rental and not pay 20% to a management company and use the income to get any hotel or arbnb you want
YES many of my recent zoom calls have been comparing STR to Long term rental in a growing area, and the returns can be better with less wear and tear on the property in the better school districts- however with the market appreciation coming up so fast its getting more difficult to find cash-flowing long term rentals. You almost need to build them and wait for it to be done then rent it out (if HOA allows rent outs first year)
I noticed you didn't factor in utility costs. We have capital to invest in real estate and are looking into this prospect. Doing my homework now to determine where to invest. Are you a realtor/PM taking on STR's to manage for investors?
Another viewer pointed that out as well- correct the Owner needs to keep the utilities in their name or with their property manager, and it can be as much as $400-$800 per month, if the renter is using pool heat they pay extra typically. I am a broker/owner of my own Real Estate company and work primarily in the Lake nona area, however have 10 years of experience all around orlando, including short term rental investments, thus I wanted to share this video. I don't personally manage the STR's but have some recommendations on vacation rental management companies that do a great job for as low of fees as possible. If you're looking to invest, shoot me a message at Justin@TheOrlandoPA.com and we can show you which styles of properties are profiting the most, even in this inflated market.
I have a rental property in the Boston area I would like to sell and then buy two small condos in Florida. That way I can have my rental income but have flexibility with one of the properties for the snowbird life. I am more interested in golf. I would be paying cash because of the capital gains tax if I do not reinvest in property.
Good plan! I am a golfer and would love to show you which neighborhoods to target. Let's find a time for a zoom Justin@TheOrlandoPA.com
@@OrlandoPropertyAdvisor Believe it or not I don't have a cam on my computer. my IT daughter got a Great deal for me..lol But I will find away. Thank you so much for your reply.
I need to hear more about HOAs not being inherently bad as we are all taught in life . In Florida it seems different than say Colorado HOA rules
if you keep your property maintained, you'll never hear from them. If you let it go, you will get letters to fix things.
Thank you sir, are you an agent ? I’m looking for buyers Rep right now .
@@RiskOnTrading yes I’m a real estate broker in Orlando for 12 years, ranked in top 25 last year out of all agents in central Florida. Happy to help advise on a smart investment purchase
I'm looking in Clearwater with about 60k to for a downpayment, are you familiar with the area? Any advice would be appreciated
I just vacationed in Sand Key, south of Clearwater and it was quite nice to be just a bit away from the touristy hustle-and-bustle. Email me your criteria and I'll have my colleagues who work there send a list of available properties.
Where are you getting 80% occupancy as average ? It’s more so 55-65% occupied
Also , State hotel Occ Tax at 5% , utilities , streaming services , etc on top of it all . Supplies like sheets too ..
as more properties get built yes this can be true. I only look for the winners, so i'd never suggest a low performer- but some have potential to be improved and get the occupancy up. And yes there are other operating costs. this is a ball park
We would like to invest into something near Universal & Disney in the future. I myself would like the property to essentially pay for itself from being rented out for the majority of the year. You mentioned how many people think they can just schedule their time but it may not be that easy. What’s your suggestion for max profits as well as us being able to enjoy the property? Also using a figure from another comment let’s say 100k to invest. Thanks in advance sorry for the long comment.
Hey Paul! i'm happy to dive in and find this for you; let's schedule a zoom call so we can hunt the MLS and look at rent values, using my spreadsheets to make sure it cash flows to pay for itself. We can look at townhomes for this price range that rent out for $150/night currently. Justin@TheOrlandoPA.com
@@OrlandoPropertyAdvisor absolutely thank you for such a quick response I will reach out this afternoon to schedule a possible zoom call.
Hello,
First of all thanks for the great information provided.
By watching your video, I understand that Vacation Home in the beach might be more advantageous in comparisson with Orlando in the 300-350k range price.
Therefore, which city/beach would you reccomend me to buy an apartment to maximize the ROI on a real estate around 300k-350 w/ mortage and down of 25%?
I just did a comparison like this for someone who called, We found that the average nightly rental was about $140 and there is room to cash flow with 20% down, and higher interest rate on condos vs single family, however if you are not going to use it for your own stays, it may be better to go up in price point to achieve the higher nightly rentals of larger homes near disney that are getting $300+ per night- thats where the "Meaty" gross rental income comes in and better ROI. I feel that $400k is a better target to compare Air Bnb to long term rental in better school districts of Orlando. Also I like townhomes vs condos for market appreciation even in Short Term rental areas of Kissimmee and Championsgate. if you want to discuss further please reach out to me direct for a private zoom call. Thanks for watching!
Please tell me what does ROI mean? thsnks,
Hi, thank you for this video. I’ve been looking for quite some time and have looked at Kissimmee, Poinciana, and now Davenport. It’s hard just being a new investor. I’d love help with getting a property with 80% estimate and to actually profit. Also, any advice on how to know if a property is good to buy when looking on mls- or the housing sites whether? I’m looking more specifically on how to look at the price and if it’s a good buy. I’ve tried using sites like Air DNA but still a bit lost.
I would like to do a DSDR loan unless there’s something better out there. Also I live in Colorado, and may be looking to move to Florida in a year but want a rental as soon as possible. Would love your thoughts-
None of the cheaper air Bnb properties are cash flowing with an investment loan over 7% interest… but there are pockets of better ROI I can show you, need to stay under $225/sq ft and achieve $250/night minimum average nightly rental price, at least 5 bedrooms, 2900+ sq feet, not too far from the parks. Each has different fees and amenities to draw in renters. It can be analysis paralysis so ultimately have to narrow it down and wait for the right opportunity with more cash down.
@@OrlandoPropertyAdvisor I am willing to try.
@@ramevans7969 let’s do it, shoot me your email and I’ll start on the low side with best looking options under $450k and check rental income and fees
Justin@TheOrlandoPA.com
Anywhere I can get that spreadsheet from? Cheers
Yea I can email it to you- there’s the monthly payment estimate and average nightly rental ball park of fees
I’ve been noticing with any kind of 8% loan rate the properties don’t cash flow typically
I am interested in knowing more about investing in the Central Florida area for Air bnb rental. We are planning to relocate and a multi family would be good to start as we have 3 young kiddos.
There aren't many multi-family units in greater orlando, and when we do find one they are usually in not-so-great areas. you have to search for no-HOA or osceola county rather than orange county to be within zoning rules, but overall Orlando was just not built with duplex/triplex/quadplex's in mind.
@victoria jonas
May I ask which investments are good? I've had an apartment for quite a while now but I've found it difficult to increase the luxury of my interiors.
@victoria jonas Heard many good recommendations about ROCHELLE DUNGCA-SCHREIBER by some YT channels, Seminars and other platforms.
I was reading the comments and you mentioned about new builds. Roughly speaking, how much are we looking to spend to buy newly build homes for either a vaca home/rental property…and in what areas?
$350k-$500k for townhome or smaller single family in a good area for long term rental like lake nona/winter garden/dr phillips, pulling in $2500-$3000/mo. $450k-$650k for STR larger houses that bring $250-350/night avg near disney. New builds are generally further out and "skinnier" so new is not always better.
@@OrlandoPropertyAdvisor thanks for your reply. what do you mean by “skinnier” for new builds?
@@thevdim 30 feet wide homesite, by 125 foot deep. Long and skinny front to back
@@OrlandoPropertyAdvisor For starters, do you recommend forming an LLC before starting any type of investment of rental properties?
@@thevdim when getting the mortgage on it, would have to be in your name and can’t put ownership in an LLC, depending on how your business can show income to qualify
My business partner and I are looking into investing in a rental property in the $135-175k region. We'd like to go about 15 minutes outside of a beach town in Florida. Do you have any recommendations on who to talk to in the state to get started?
Im not sure that you can buy anything for that range that isn't a trailer/needs a ton of updating. Also consider how far away from the town as many renters won't want to be that far out. I think the best place to start would be the florida panhandle or possibly Daytona/ormond.
@@OrlandoPropertyAdvisor thanks for getting back so quick. We're looking in that price range because we are using our own capital right now. We're new to real estate investing and unsure where to go or how to meet other partners. We'll definitely take a look at those areas. This video helped a lot
The Florida is up like crazy. Condos doubled in price in 1 year. For your price you can probably find one bedroom.
@@TheUkrainianStar prices are coming down quite a bit in Palm Beach County.
Is Key West a viable option? Looking into short term (airbnb) rentals that cash flow good throughout the year. Down payment would be around $200k for a $600-$700k property Not really interested in central Florida. I prefer beach with a good vibe (Key West, Clearwater, Miami, Daytona). What are the can't miss areas?
Key west prices are out of control. $1MM+ for anything that views the water. Take a look at siesta key, longboat key, st. Pete beach. All West coast gulf areas and beautiful beaches with small town feel
@@OrlandoPropertyAdvisor Siesta Key seems to be heading that way too. In Key west you don't need to be facing the water; as long as you are near Duval street your in great shape. I just took a look at Siesta key and the prices are kind of crazy there too.
Edit: Looks like Siesta Key's version of Duval street is Siesta Key village. Just watch a youtube video and it looks nice..
@@OrlandoPropertyAdvisor
All West Coast gulf beaches with a small town feel....
What's the sweet spot price point in those areas?
@@THEGABNER My wife and I tried to find beachfront on the west coast condo for under $750k... its super tough to find now. Even the little no-HOA houses like indian rocks are super pricey, because land is limited there. But if it can compare to a $700k Disney 8 bedroom house that gets $400/night then that would be my suggestion for a sweet spot range. This means $120k gross rental income per year then subtract out all your fees and mortgage, still leaving a sizeable profit on 25% down invested.
@@OrlandoPropertyAdvisor
8 bedroom Disney house at $700k and $400/night is the sweet spot in all of Florida?
Any particular sweet spots when buying with cash? Condo hotels?
High density urban feel isn't my ideal.
The examples you gave for the Disney area are horrible investments. 100 a night ? I get about 375 a night at my 3 bedroom condo in Myrtle Beach during the season. I gross close to 40K a year and leave it empty all winter. Less use = less wear and tear and the need for replacements. If you net 2200 a year you really aren't netting anything due to maintenance costs. Air conditioners go, appliances go, even the furniture needs replacement. If you think some vacationers care about anything you have in your property, you are mistaken. The other variable is HOA fees. HOA fees may be 500 a month this year and they they get raised to 600 a month next year., not to mention special assessments. The only way you make money on the example you gave is hopefully when you sell
Did you even watch the video?? When I showed the example of the condo the purpose was to show that it does not make much profit, hence showing that the larger properties do better, at $350-$400/night. Those are now trending in the $1M range though, and with all the maintenance like you mentioned, have to do the math before committing. Congrats on your rental, that’s a nice margin 👍🏽
The local guy… why did you choose him to cohost? #1 grammar is IMPORTANT!
#2 no you can NOT purchase anything east of the intracoastal under 400k that is livable and safe in the Fernandina beach north of Amelia island down south of Daytona.
3. salt air and salt water cause very large upkeep, maintenance and repair costs.
4. You are going to need 20% at least unless it’s going to be your primary residence
5. If planning on using for Airbnb or Vrbo you are going to need a business plan and proof you can afford the insurance and mortgage for months on end if not rented.
All great points! Thanks for watching and the input this is helpful, Valliant is a good friend and doing video as well in the Jacksonville market 🙌🏼😀
If I have 100k to invest in real estate in central florida, what's my best strategy?
I would put 25% down on a $375k townhouse in lake Nona that rents for $2800/mo... your carrying costs would be $2350 and it would cash flow about $500/mo from the start. As lake Nona grows it will be worth $450k easily in 4-5 years. Long term investments in a growing area produce the highest ROi.
You mentioned a “sweet spot” for property size (bedrooms, amenities, etc), what would those parameters be for vacation rentals in Orlando area? Thanks!
For Disney vacation homes I’ve found that the 6-8 bedroom homes with a movie room, game room, pool, and nice looking furniture rent for “meaty” amounts of up to $400/night, allowing them to achieve the $90k gross rental income a year, and also appreciate more in value long term since the price per square foot will still be attractive. Look for 2700 sq feet or more, in an amenity rich neighborhood, currently those are selling for $550k-$700k and some might need a light refresh to get better rents (you’re competing against other listings for renter attention) hope this helps, email me for more info if you want to dive deeper
Thank you Justin. Other than Windsor Hills, any other target neighborhoods for such properties? Appreciate it!
Yes championsgate, solara, encore at reunion, and more- some new builds as well
I have about 30k for a down payment for a rental Property, However Im still undecided which area should I buy from, I'd like somewhere I know it will attract tenants, I was looking into Kissimmme, Lake nona, Winter Park, and Baldwin Park, which area would you recommend me?
Hi Andres, I would do a townhome near where Disney just bought 60 acres to make a Campus by the Lake Nona town center, and bring 2,000+ jobs to the area in the next 4 years. Townhomes for $325k-$350k are still possible to find in Lake Nona areas, just not Laureate Park. These are renting for upwards of $2400/mo and thus even with an HOA of $275/mo and possibly some PMI *(since you wouldn't have 20% down with $30k and there are closing costs) it would probably still cash flow from day 1, as well has have the most Upside potential out of any of those areas you mentioned. Let me know If you want to do a zoom call about it and we can dive deeper. Thanks again for watching!
@@OrlandoPropertyAdvisor - interested in lake Nona area to invest
@@mamachinu great! Let’s do a zoom call to get you the latest information on new builds coming out
Justin@TheOrlandoPA.com
When calculating the Airbnb potential revenue, you take the whole advertised amount per night. I'm guessing that Airbnb takes at least 20% out of it?
There’s more to it than that- VRBO/home away, Airbnb, and the management companies all have slightly different commission structures on bookings. Then you have your own cleaning and maintenance costs. Plus managing the actual check in and out and emergency calls. Then taxes, HOA, utilities, home insurance, repairs and upgrades each month. So it’s important to be renting out for at least $200-$300 per night depending on the unit size and condition. Hope this helps, let me know if you want to dive deeper. The market is softening so there are some deals out there to turn into top performers :)
@@OrlandoPropertyAdvisor Thanks. My point was that you were using full amount in your video. Instead it should be decreased by 10-20%
@@kubagorajek1365 yes hard to cover every cost per property but glad people got to see a ball park. I’m also glad the prices are getting more reasonable now :) thanks for watching and curious to see how the market keeps shifting in STR and LTR here
If I have around 50k to invest around Disney how can I go about purchasing a vacation condo
A $250k vacation condo with $50k down is 20% down, plus closing costs and your monthly payment would vary based on HOA fees, taxes, Insurance but figure around $2000 per month with everything. Interest rates on certain condo buildings are higher as well. If you rent it out 80% of the year at avg nightly rate of $120/night, this pretty much the break even. (simplified calculation) email me if you want to dive further Justin@TheOrlandoPA.com
Very nice how to buy it??
Most are purchased with cash, but there are loans for 25% down for investment
Beach
Why did you compare a house to a condo? Seems to me, you need to compare similar types of properties that would sell for the same price and have the same mortgage payments.
I didn't compare a house to a condo. I showed two types of properties in each area. Entry level Condos in Disney area differ from condos at the beach. Townhome and single family homes are also in each area. Selling for the same price vs better future value potential or average nightly rental is not always a level playing field. There is a "sweet spot" in every market for best value vs ROI and it could be a large house in orlando vs a 2 bed condo in Sarasota. Hope that makes sense.
I want to buy in Tampa or Brandon 😍
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please I need your advise: where to buy a rental property to get the best profit from rent. Just give me two sentanses: please: how much will be a rents profit if i will invest $250 000 to a property. Thanks a lot.. I am from the Ukraine, widow, live in GA now.
Hi Tanya, Here are some Condos under $250k that can rent out Short term or long term. Profit will depend upon the rent amount that can be obtained, minus any taxes & fees. tinyurl.com/5m5pwbbb
You forgot about paying for utilities and cable costs.
Yes! Owners have to keep utilities in their name and if the guest wants to use the pool heater they charge more in rent for that week
This is another reason why the $250k condo example doesn’t make much profit
@@OrlandoPropertyAdvisor are you familiar with Cape Coral? If so, What are your thoughts
@@KimJeffer one of my friends from Michigan just relocated there, They like it for that south Florida feel and got a pool house for under $500k, i have an agent partner I work with in that area
You forgot to include the cost of furniture ~$50-$100k?
Nearly every resale vacation home is sold fully furnished. On new construction you would have to furnish it yes. And on some that need renovations, replacing worn furniture and bedding needs to be budgeted into the cost. The property management team can take care of these updates each month, and bill the owner
How about utilities and Wi-Fi? Another $300
yep on my spreadsheets now Im using $600-$1000/mo for electric/gas/repairs on the larger homes, those stay in either the property managers name or owner's name
How many weeks per year can you realistically expect to book a 6-8 bedroom single family home? What type of profit are you looking at for that $140k investment?
The best examples I’ve seen are booked about 75-80% of the year at $400-$450/night average, bringing in $100k-$140k gross. If they are self managed the owner retains more profit but it’s a local business really, if management company only takes 20% instead of 30% for bookings, cleaning, and maintenance, then utilities can be expensive, taxes, HOA, insurance, and upgrades… i can’t give you an exact figure but in those winner scenarios its more than you’d make on a long term rental.
The problem is, only about 20% are winners. And it helps when the owners, marketing team, and management team all run it with the goal of making it a 5 star experience with high end finishes, not basic old tired feeling house expecting a fully booked calendar. Hope that makes sense, we have been able to pick winners and back it up with performance data profit and loss statements
@@OrlandoPropertyAdvisor My family comes down to Kissimmee every year. I was going to buy into the Disney Vacation Club which for the level of accommodations we want is around a 100k commitment which I don’t want to finance. I’ve been thinking about investing in a short term rental property with the money but it would have to pay for itself. I don’t want to spend the 100k then have to worry about a mortgage. If we could make 40k a year in profit that would be a huge win for us. I’m just in the beginning stages so I’m really trying to see if it’s worth it.
Unfortunately there's nothing you can buy outright for $100k that is going to profit much at all, especially not $3k per month. But going forward if your goal is an STR in Orlando you can use that profits, I'd recommend having a plan for a budget of at least $350k and target getting $225/night with a nice quality townhome or smaller single family home. Pay the mortgage down in 10 years and enjoy the nest egg you saved for while hopefully making better than Long term rental monthly cash flow.
@@OrlandoPropertyAdvisor that’s not what I meant. I mean I’m fine making a down payment or overall initial investment of $100k. However I want the the property to essentially pay the mortgage by being rented out. I don’t want to have to worry about paying the mortgage on a second home from my paycheck. If I could make around $40k a year profit on top of the property paying for itself that would be a win for me.
@@davyannajones understood- yes with interest rates in the 7’s it’s difficult to get the asset to not only break even, but also profit. The tipping point will be better prices / lower rates to borrow plus finding that ugly duckling that can be improved to a rockstar of performance. These factors will balance the market in the coming years
Great video!
Shameless plug here, we're a FL title company and real estate attorney. We would be happy to offer FREE legal advice to your followers and do closings on their real estate investments.
Thanks for watching!
Daytona is the best
I like New Smyrna Beach just south of daytona
Florida has lots of floods why would someone want to live by the beach?
Because Sand, Sunshine, and Surf is a vibe
Kick ass, come invest in Florida and take away from the children, you guys rock