Estimating Expenses Near Disney World

[Benjamin P Scribner]

I'm new to STR investing and could use a "gut check" on my estimated expenses. My plan is to purchase a townhouse or SFH in the Lake Buena Vista (LBV) area and rent it through AirBnB for positive cash flow most of the year. My Google search found "Kissimmee short-term rentals on Airbnb and Vrbo average 74% occupancy, $273 daily rate and $4229 in monthly revenue" -- AirDNA. That sounded great until I compiled monthly operating expenses at $3,797 per month! 

Market forces are driving a lot of the high operating expense. Current LBV real estate prices ($305K - $480K) are so high that more than 50% or more of the monthly expenses would go to paying the mortgage. I'm trying to keep all other expenses as low as possible to make this work, but I also want to be realistic. 

Do any of these numbers sound outlandish? 

$267/Month - Taxes (based on Osceola website)

$245/Month - Insurance (based on Zillow listing in Regal Oaks)

$145/Month - Cable/Internet (based moneysavingpro.com)

$117/Month - Repairs ($1/sq. ft. for Zillow listing in Regal Oaks)

$180/Month - Capital Expenditures (best guess)

$400/Month - Utilities (10% of anticipated monthly rent)

$475/Month - HOA (based on Zillow listing in Regal Oaks)