Orlando, FL - 400k budget - is there still room in this market for str?

Question

Hey, Bigger Pocket community! First of all, just want to say this community offers much information and positive energy that it really helps motivate people like me to push what was thought to be undoable!

Having said that,  I've been trying to start a STR in Orlando, FL and havent had much luck. Staring at realtor.com for the past month,  I have seen the prices coming down in few areas, but I still cant get the numbers to work to operate a STR. Am I too late to the game? or theres still room to play around here?

I am particularly looking into areas within 5-10miles of Disney.  I have a budget of 400k, i cant really touch the big houses with game rooms/pool/themed rooms,which seems to do very well. So what is my best move/target/area within this budget?

My Criteria:

-close proximity to Disney

-private pool

-3bedrooms

-2.5bath min

I would definitely be spending part of the budget to theme out the house.

Really would appreciate any pointers or advice that will lead me in the right direction. I do know I am capable of doing this in the long run, I just want my first STR to solidify a foundation for many more STRs to come! Thank you!

Tyler Gibson · Answer

Many of the properties in the area come fully furnished but you're likely still going to need to do some redecorating. Realistically it sounds like your budget for purchase is closer to 350 and that is going to make it challenging in that area. I would suggest you look at condos or townhomes in the resort style communities as I think they would perform better as smaller units. The smaller single family homes that have a private pool within the proximity you're talking about are probably in more residential neighborhoods the opinion that they don't perform as well as the properties that you're going to find in the resort style communities

Nathan Gesner · Answer

David Greene talked about this in the latest BP Podcast. Investing has been too easy for too long. We could buy just about anything in the last ten years and the numbers would work. Now the prices are high, interest rates are high, competition is high...it's difficult to find anything that cashflows and it's difficult for everyone. The people tooting their horns about how successful they are are probably basing that success off homes purchased 2+ years ago and they've been lucky with increasing rent rates and equity. Wait until hard times hit and suddenly these geniuses will start to disappear.

The market is tough now. You need to accept that and work within it. We all need to find ways to invest differently than we have in the last 10 years.

Shawn McCormick · Answer

@Hung Ma Welcome to the forums! Glad you are finding value here.

You are looking in the right area, keeping as close to Disney as you can. Your budget will only get you into a resort community if you look at condos and townhomes, you'll have enough options to achieve your goals. There are several available in some of the better communities (Windsor Hills, Championsgate, Paradise Palms, Storey Lake) that are all under $400k.

You didn't mention your loan type and down payment, using a big chunck of cash to put down will eat into any renovation budget and sounds like you are all in at $400.

If you are using websites to sort thru communities, you are likely not narrowing down to just the ones that are specifically for STR, which you need to be. Happy to help point you in the right direction.

Best of luck!

Hung Ma · Answer

@Alice Horn, I am totally down with theming out my str if I ever find one. It's one of my goals!

Carlos Garcia · Answer

Great way is to find someone who knows what they're doing, like an agent from a known agency who does STRs. She/he will know which areas to focus on per your specific criteria including budget. With the numbers, the biggest thing right now is getting that interest rate to work in your favor. Prices already going down so if you can combine both these factors, you're in a very good position to pull the trigger and execute. Best of luck.

Hung Ma · Answer

Hey David, you definitely nailed this one.  I am still optimistic about the market, even though the numbers say otherwise. I think there's still room for people like me, just have to be savvy at this point. Thanks for your comment!

Michael Baum · Answer

@Shawn McCormick has a ton of knowledge about the area @Hung Ma. I would get on a call and he can help whittle things down.

He has answered a ton of questions about the area for me.

Alice Horn · Answer

@Michael Baum Yes! And my point is that while this type of theming is very common for larger homes, smaller units tend to be more vanilla. So for anyone with a smaller budget this can mean opportunity. Happy to brainstorm some ideas!

Michael Baum · Answer

No kidding. Some of the themed rooms in the top renting homes in the area are keeerazy.

Sleep in a Tie Fighter bursting out of the wall. Life size R2D2's, Cinderella castle rooms..the list is endless.

Alice Horn · Answer

Agree with others that it will be very difficult to find a pool home in close proximity to Disney that ticks all your boxes. If you start looking at condos and townhomes, the challenge is increased competition from similar units and hotel rooms. That's when having absolutely spectacular decor is EVERYTHING. If you can be really creative in your approach and turn your smaller unit into a magical Harry Potter/Hogwarts wonderland, or vintage Mickey environment...your unit will stand out. Happy to share some examples and price comparisons!

Orlando, FL - 400k budget - is there still room in this market for str?

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