Looking for an investment property/airbnb near disney.

[Hyokyung Woo]

Hi All,

I reside in northern Virginia. Because our kid loves to go to Disney and SeaWorld in Orland, Florida, we are considering investing in the area—buying a property to rent out or Airbnb, so we can also use it as a vacation house when we visit Orlando. What do you think about the Orlando market? Do you think it is worth investing in? I want to hear your thoughts if you already have an investment/vacation house in Orlando. And also, do you think it is a good time to buy a property in Orlando in this year?

[Ryan Moyer]

I own my own, and manage another 20 here.  Happy to give you my honest opinion as both an investor who has properties in multiple markets (including Disney), and as a manager with a bunch of properties around Disney, and share financials on my property.

The quick summary is that Disney market is super saturated and not a cash flow market right now without putting money into theming, but can be a fit for people that have other primary goals.

Pros

- Virtually zero regulation risk if you buy in the approved areas (these are resort neighborhoods built specifically for STR)
- Stable long-term demand (Disney will always be a thing, compared to some other markets that just got on the map temporarily via covid and will continually fade in demand)
- Can be great if personal use is a priority
- Not as seasonal as most markets so revenue is spread more evenly throughout the year compared to some markets where most income is in summer and the rest of the year is mostly dead

Cons

- Competition is probably the highest in the country here, in terms of both raw number of listings and quality of listings (lots of super themed out/tricked out homes to compete with).  This insane competition drives down rates and means short term cash flow is difficult without investing significant capital into the house.

Overall I think it's a good stable long-term investment, but definitely on the low end right now if immediate cash flow is a priority.