Thinking of adding vacation rentals to portfolio in Poinciana, FL 34759

[Jack B.]

I'm looking at 1031 exchanging one of my houses in Seattle to Florida as a vacation rental. The houses are nice and prices are relatively low. But it's 1 hour away from Orlando, doubt that's going to ABNB well. So question is:

1) How far outside of Tampa or Orlando can one buy and successfully ABNB?

2) What companies do you recommend for managing the ABNB since I'm out of state?

3) What's a typical % of rental revenue that the management companies for this plan will generally charge.

[Shawn McCormick]

Thank you @Michael Baum! Hey @Jack B., I would absolutely agree with Tyler. Literally came from Poiciana less than 20 minutes ago (see photo..this isn't the only reason I hate Poinciana, but it is now on my list!!) I have sold several homes there and it is absolutely NOT where you would EVER put an airbnb!!!

I won't speak on Tampa, but it is a powerhouse in rankings for growth. I do however, know the Orlando area very well and specifically STR's in the Disney area. To answer your questions.

1. There are dozens of communities within 10-12 miles of Disney that you should consider. There are less if you only focus on the best of the best communities that are built specifically for STR, not for families to live in, they are resorts. That is where I would focus and that is where you will have the best shot.

2. There is a debate on self-managing vs. hiring a PM. I would strongly suggest that if you are not familiar with the STR space, especially in a large/competitive market like Orlando. Build in the cost of a PM for at least one year. Let them do all the hard work of websites, algorithms, marketing, automation, price analysis etc and learn from them. Once it is all set up and running and you have tons of great reviews...then try it on your own and save the money...but only if you are willing and able to commit to doing all the work.

3. Most PM's here are 20%. Since it is such a huge market, we have all sizes and types of PM's. You have 'hosts', property managers and full service property managers that will have on staff maintenance, cleaners etc and be a great resource for decorators, a/c techs, pool guys and marketing.

Happy to dive deeper and have a call as there are many nuances to this market that you should consider.

Best of luck!