Accidental STR Purchase - Dumb Luck or absolute mistake?

Question

I live outside of the US in Belize CA. Have a very demanding w2 Job which pays excellent as I am at the top of my game. The whole reason behind the home purchase was for my 8yr old step daughter who is smart as a whip and literally withering away on the vines here in the Belizean Education System. This along with no extra-curricular activities made a home purchase in the states a necessity. Given my current income level I chose FL to look for its favorable to State Income Tax status. I am not a big fan of Miami and found the northern FL I was able to get more bang for my buck. I found the home I liked purchased it and afterwards realized what I had. The issue is I know literally next to nothing about STR's with the exception of most people talking about the great income they are bringing in and the ability to purchase more and more homes. Hmmm Sounds great but... Now I know that anything worth-while in life requires sacrifice, and it makes me a little concerned that no one seems to be sharing this side of there story. Anyway, after more research during my last vacation I feel it is potentially possible to make a few bucks and maybe be able to make enough to develop my hilltop jungle property here in Belize. The property is in kissimmee and 5 min from Disney. It is currently under a management agreement with jeeves (which has sold twice now and soon to be Vacasa). My fear is that I just do not have the time available to assess this situation properly and am now on the fence if I should dump and run or not. Now I am a gambler so my gut is telling me to give it a run. I just don't know if I have set this up properly and have the patience to deal with the drama this will no doubt produce on my own. I am also interested in purchasig more houses as I have the capitol but, I will most likely have to wait until i build up some type of track record. Any advice will be most appreciated and also feel free to be as honest as possible with me as I know I probably STB on this one. LOL

Dave Stokley · Answer

I’d be wary of the big-box national STR management companies. Find a local company with a good track record. If you already own the place and it’s furnished it doesn’t sound like you have much to lose by giving it a shot.

Bruce Woodruff · Answer

Contact a local PM (that specializes in STRs) and have them analyze the property as an STR......

Sastry Srini · Answer

I think you should give it try. I co-own a STR in St.Augustine,FL which is managed by Vacasa ( last year it was managed by a local PM, Vacasa bought them out 6 months back). So far, it has been a good experience. As long as you can keep tabs on things, you should give it a try as it is in good location ( 5 minutes from Disney). Best of luck.

Jay Breitlow · Answer

What does the current income look like relative to the peers? The best gage of it's production is how well does your unit do to what's going on around you. There is no doubt you are in the slow season now, so don't be discouraged if you are a bit slow b/c kids are in school etc. Look at a revenue projection, broken down by month and see if you like to year, quarter and monthly picture as it's painted. To @Bruce Woodruff's point I know a guy that can analyze the area so you can build out a proforma. @Dave Stokley also has a great point, the larger companies that in this case are publicly traded often don't give u the boutique personal touch. But that's also not for everyone either. Sound like you got 3 big things going for you and that's location, location and LOCATION! With not bookings tho i support @Sergey A. Petrov's comment ;) Go get em @David B West!

Alice Horn · Answer

@David B West hopefully your "accidental STR purchase" will turn into a happy accident! happy to crunch the numbers and run some reports (revenue, occupancy, expenses) to help you quickly assess what you've got! On a personal note, my family and I live in the Disney surrounding area and can share thoughts on schools, neighborhoods, and what it's like to raise a family around here :) Send me a direct message and let's chat.

Bonnie Low · Answer

Learn about the STR space before you make any decisions. Read the book from the Short Term Shop and listen to their podcasts. There are MANY STR related podcasts out there so you'll find more than enough info to help you make the right decision.

Henry Clark · Answer

Forget the STR question, your at the "top of your game" and a "gambler"; you will figure it out. Florida is ranked third in the nation in education, which is great for your daughter. Find out how the schools your daughter will go to are performing, before you finalize your housing decision. If you haven't already talk with families in the neighborhood and the police. Moving from Belize you had few choices. You have many choices if you can pick any neighborhood in Florida. Sounds like a great move.

Sergey A. Petrov · Answer

No bookings??? That is your manager’s job. Fire them now. And yes they should be listing it on all the major platforms and maximizing your revenue (and their own since they get paid on a percentage basis)

David B West · Answer

Thank you all so much for your votes of confidence. I guess I needed a little reassurance I am doing the right thing here. One concern I have is future bookings, I have none. After a completely sold-out month of July there is nothing. Is this normal? Also, I am uncertain if I should on my own put up posts on the bigger sites as so far it looks like my property is only being shown on the property managements site. I just need to have this support itself so I will not be hindered when it comes time to purchase the home for my family. I am projecting this will be sometime in January 23. Again thank you for your information.

Sergey A. Petrov · Answer

You already own it and it sounds like it is already an active STR and managed? Are you not happy with the returns? What is making you think you need to unload it and run?