Orlando 1st Property to Short Term Rental
COVID has me WFH until at least summer 2021. I work in DC but didn’t renew my lease and am currently living in my hometown of Orlando with family rent free. Short term rental by Disney is a goal (think: Airbnb). Should I buy now live there and then rent it later? Thinking I can slowly get it set up and do rentals while I’m here as well depending on demand. What should I consider? What steps should I take?
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@Andrea Aguilar
Short term rentals should do well in the near future as travelers will probably favor the privacy of a home vs sharing amenities and common spaces with other guests. As Alice mentioned, houses will pool will tend to do better. A few steps you could consider are:
1. Select the area for the investment. I don’t think there are that many options in Orlando for short term rentals, but in Kissimmee you can find a lot of great communities for it, and still very close to the airport and parks. Search around the 34746/34747 zip codes
2. Save enough money for it. For a short term rental you’ll probably need 20% down payment (assuming you buy as an investment property), and then you’ll need around 15k for furniture + additional money for remodel. Typically, for a 250k house you’ll be looking at around $60k out of pocket
3. Remodel the house, get the permits, learn the laws and business. There are a ton of good posts on this, while it’s the most important step, I’ll spare the details
4. Start testing the water. Put your house on Airbnb/VRBO and start getting bookings!
Remember, the short term rental market is in a different industry from real estate (and regulated by another entity in Florida). It’s a lot of work, but the cash flow can be significantly higher.
Feel free to reach out with any questions and best luck!
Serena