Seeking Advice on STR Investment in Kissimmee and Downtown Orlando

[Erene Massart]

Hello, BiggerPockets community!

I am interested in purchasing a new investment property and have been pre-approved for up to $700,000. I am currently looking at options in Kissimmee and downtown Orlando. Initially, I was focused on multifamily properties, but after doing more research and considering that I will be making Florida my primary residence, I believe that house hacking or short-term rentals (STR) may be the ideal route for me.

i still will own my Southern California home; shift it to secondary. Only renting out an ADU on that property.

My plan is to purchase a home that I will hold onto while hoping to gain both forced and time appreciation. I’ve noticed that Kissimmee has homes ranging from $300,000 to $700,000, but I’m curious about whether this is an ideal location for STRs. Is the market overly saturated? I’m trying to familiarize myself with the area more thoroughly.

it seems to have a stable increase in prices.

Since I plan to live in the property initially, breaking even in the first year is my main goal. (5% down; PMI removed with renovation)

However, I’m also wondering if it’s feasible to have some cash flow from such rentals, or if the risk of vacancy is high in this market.

Any guidance or pointers from those experienced in this area would be greatly appreciated! Thank you in advance for your help!