STR Communities zoned as STRs

Dax Jauhola · 2024-04-17T10:30:12-07:00

We have owned a STR in Scottsdale for the last 4 years and are getting ready to buy another one. However, like everyone else, we are not really sure about the next market. We live in Seattle, so somewhere on the West Coast would be ideal. I am not sure if I want to buy another STR in a residential area because of the unpopularity of Airbnb in some areas, such as Southern California. I feel like eventually, these local municipalities will ban Airbnb. In Scottsdale we have Homes not Hotel signs in many of the yards, this is a group trying to ban Airbnb. In Washington, we have Suncadia and Seabrook. Oregon has Sun River. These are communities that were built to be STRs, zoned as STRs, and will always be STRs. If someone buys a home in one of these communities, they understand that it’s a vacation destination. I am not exactly sure what these are called or how to search for them? Are there communities like these in California, Colorado, or Utah Here is Suncadia and Seabrook https://www.destinationhotels.com/suncadia-resort https://www.travelandleisure.com/trip-ideas/seabrook-town-washington-coast

Zach Edelman

Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes

2y

I am not sure such a technical term exists. The concept, though is interesting. Is this a common thing (STR mini community)?

0 Reply

Andrew SteffensBusiness Member

Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes

2y

I know FL is the exact opposite side of the country you want to invest in but we have state level protections in place. There is a state law from 2014 where municipalities cannot create new or amend previous laws regarding how long or short a homeowner can rent their property for. Places like Clearwater Beach that had existing laws can keep the law but cannot change it.

Orlando has some communities built where they were built for investors/second home owners in mind to use and then rent out most of the year. However, the Orlando market is really struggling with saturation currently (all it really has to offer is Disney - I like markets where there are multiple draws). I am not sure there is a specific term for this type of community, rather they market is as STR friendly, etc.

Best of luck!

[email protected]813-563-0877

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Brett Deas

CO · Member since 2022 · 588 posts · 426 votes

2y

Not sure anything currently exists in CO. Nor would I buy here with the looming property tax threat against STR's.

One piece of advice, even though they are not full towns purpose built for STRs. A lot of vacation towns will have houses zoned for commercial use, which will most likely protect you from any regulation issues if they want to say its a commercial use since you will already have the zoning for it. I have dealt with these vacation towns a few times and some places are already zoned in our favor.

2 Reply

Shawn McCormickPro Member

Realtor · Central Florida-Orlando · Member since 2014 · 1k+ posts · 892 votes

2y

Quote from @Andrew Steffens:

I know FL is the exact opposite side of the country you want to invest in but we have state level protections in place. There is a state law from 2014 where municipalities cannot create new or amend previous laws regarding how long or short a homeowner can rent their property for. Places like Clearwater Beach that had existing laws can keep the law but cannot change it.

Orlando has some communities built where they were built for investors/second home owners in mind to use and then rent out most of the year. However, the Orlando market is really struggling with saturation currently (all it really has to offer is Disney - I like markets where there are multiple draws). I am not sure there is a specific term for this type of community, rather they market is as STR friendly, etc.

Best of luck!

Sounds like you don't know Orlando as well as you may think. We actually have a couple dozen great communities built specifically for STR and we have much much more than Disney that people come here for. In fact, most of my clients that own STR's near Disney say that only about 40% say they are here for Disney. Its the location to Disney that is the key, thats just where the zoning is friendly and the inventory is plentiful.

4 Reply

Account Closed

Investor · FL · Member since 2016 · 332 posts · 388 votes

2y

Quote from @Shawn McCormick:

Quote from @Andrew Steffens:

I know FL is the exact opposite side of the country you want to invest in but we have state level protections in place. There is a state law from 2014 where municipalities cannot create new or amend previous laws regarding how long or short a homeowner can rent their property for. Places like Clearwater Beach that had existing laws can keep the law but cannot change it.

Orlando has some communities built where they were built for investors/second home owners in mind to use and then rent out most of the year. However, the Orlando market is really struggling with saturation currently (all it really has to offer is Disney - I like markets where there are multiple draws). I am not sure there is a specific term for this type of community, rather they market is as STR friendly, etc.

Best of luck!

Sounds like you don't know Orlando as well as you may think. We actually have a couple dozen great communities built specifically for STR and we have much much more than Disney that people come here for. In fact, most of my clients that own STR's near Disney say that only about 40% say they are here for Disney. Its the location to Disney that is the key, thats just where the zoning is friendly and the inventory is plentiful.

While I have not studied to determine if the Orlando market is saturated I can atest there is alot more than Disney. I have spent 22 days in the past year in Orlando and never went to Disney. Sea World and Universal is a large draw on top of golf, conferences and sporting tournaments. I actually have read articles this week that Disney expects to see a drop in attendance next year because Universal is opening the new park Epic. So people will be coming to Orlando, and probably more people, but just not to Disney. They are only building 3 new hotels for this park so demand will increase near it for STRs. I do not own in the market and will not own for other reasons but it is a solid market. Just like most markets in America, STRs are returning to pre-Covid occupancy rates and most people have no experience what that looks like because they entered STR investing during and since COVID. So alot of people are screaming the sky is falling on STRs, but really it is welcome back to the seasonal pricing and occupancy roller coaster ride of STRs that have been around for decades. The other benefit of Orlando is the foreign tourist demand helps with off-season *** there summer is our winter.

1 Reply

Andrew SteffensBusiness Member

Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes

2y

Quote from @Shawn McCormick:

Quote from @Andrew Steffens:

I know FL is the exact opposite side of the country you want to invest in but we have state level protections in place. There is a state law from 2014 where municipalities cannot create new or amend previous laws regarding how long or short a homeowner can rent their property for. Places like Clearwater Beach that had existing laws can keep the law but cannot change it.

Orlando has some communities built where they were built for investors/second home owners in mind to use and then rent out most of the year. However, the Orlando market is really struggling with saturation currently (all it really has to offer is Disney - I like markets where there are multiple draws). I am not sure there is a specific term for this type of community, rather they market is as STR friendly, etc.

Best of luck!

Sounds like you don't know Orlando as well as you may think. We actually have a couple dozen great communities built specifically for STR and we have much much more than Disney that people come here for. In fact, most of my clients that own STR's near Disney say that only about 40% say they are here for Disney. Its the location to Disney that is the key, thats just where the zoning is friendly and the inventory is plentiful.

I am sure I do not know Orlando as well as you, however I do know saturation is a major issue, and I also know demand is down in that area in general. Likely more expensive airfare, higher gas prices, and Disney raising prices are not helping. We manage in Calypso Cay and frequently go unrented under $100 a night despite all of the amenities.

[email protected]813-563-0877

Vacation Rentals of Florida53 Reviews

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Account Closed

Homeowner · Celebration, FL · Member since 2023 · 37 posts · 14 votes

2y

74 Million visitors last year to Orlando, is hardly the wasteland you are trying to peddle. Orlando even in a slow year for decades has proven an investors hotspot.
There are many reason why a property doesnt rent out, least of which is due to the unit itself.

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Account Closed

Homeowner · Celebration, FL · Member since 2023 · 37 posts · 14 votes

2y

Quote from @Andrew Steffens:

Quote from @Shawn McCormick:

Quote from @Andrew Steffens:

I know FL is the exact opposite side of the country you want to invest in but we have state level protections in place. There is a state law from 2014 where municipalities cannot create new or amend previous laws regarding how long or short a homeowner can rent their property for. Places like Clearwater Beach that had existing laws can keep the law but cannot change it.

Orlando has some communities built where they were built for investors/second home owners in mind to use and then rent out most of the year. However, the Orlando market is really struggling with saturation currently (all it really has to offer is Disney - I like markets where there are multiple draws). I am not sure there is a specific term for this type of community, rather they market is as STR friendly, etc.

Best of luck!

Sounds like you don't know Orlando as well as you may think. We actually have a couple dozen great communities built specifically for STR and we have much much more than Disney that people come here for. In fact, most of my clients that own STR's near Disney say that only about 40% say they are here for Disney. Its the location to Disney that is the key, thats just where the zoning is friendly and the inventory is plentiful.

I am sure I do not know Orlando as well as you, however I do know saturation is a major issue, and I also know demand is down in that area in general. Likely more expensive airfare, higher gas prices, and Disney raising prices are not helping. We manage in Calypso Cay and frequently go unrented under $100 a night despite all of the amenities.

74 Million visitors last year to Orlando, is hardly the wasteland you are trying to peddle. Orlando even in a slow year for decades has proven an investors hotspot.
There are many reason why a property doesnt rent out, least of which is due to the unit itself.

1 Reply

Andrew SteffensBusiness Member

Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes

2y

Quote from @Account Closed:

Quote from @Andrew Steffens:

Quote from @Shawn McCormick:

Quote from @Andrew Steffens:

I know FL is the exact opposite side of the country you want to invest in but we have state level protections in place. There is a state law from 2014 where municipalities cannot create new or amend previous laws regarding how long or short a homeowner can rent their property for. Places like Clearwater Beach that had existing laws can keep the law but cannot change it.

Orlando has some communities built where they were built for investors/second home owners in mind to use and then rent out most of the year. However, the Orlando market is really struggling with saturation currently (all it really has to offer is Disney - I like markets where there are multiple draws). I am not sure there is a specific term for this type of community, rather they market is as STR friendly, etc.

Best of luck!

Sounds like you don't know Orlando as well as you may think. We actually have a couple dozen great communities built specifically for STR and we have much much more than Disney that people come here for. In fact, most of my clients that own STR's near Disney say that only about 40% say they are here for Disney. Its the location to Disney that is the key, thats just where the zoning is friendly and the inventory is plentiful.

I am sure I do not know Orlando as well as you, however I do know saturation is a major issue, and I also know demand is down in that area in general. Likely more expensive airfare, higher gas prices, and Disney raising prices are not helping. We manage in Calypso Cay and frequently go unrented under $100 a night despite all of the amenities.

74 Million visitors last year to Orlando, is hardly the wasteland you are trying to peddle. Orlando even in a slow year for decades has proven an investors hotspot.
There are many reason why a property doesnt rent out, least of which is due to the unit itself.

Truly not trying to peddle anything, however can you show me a property on market that will cashflow at today's rates and projected estimate?

[email protected]813-563-0877

Vacation Rentals of Florida53 Reviews

Website View Page

0 Reply

Account Closed

Homeowner · Celebration, FL · Member since 2023 · 37 posts · 14 votes

2y

Quote from @Andrew Steffens:

Quote from @Account Closed:

Quote from @Andrew Steffens:

Quote from @Shawn McCormick:

Quote from @Andrew Steffens:

I know FL is the exact opposite side of the country you want to invest in but we have state level protections in place. There is a state law from 2014 where municipalities cannot create new or amend previous laws regarding how long or short a homeowner can rent their property for. Places like Clearwater Beach that had existing laws can keep the law but cannot change it.

Orlando has some communities built where they were built for investors/second home owners in mind to use and then rent out most of the year. However, the Orlando market is really struggling with saturation currently (all it really has to offer is Disney - I like markets where there are multiple draws). I am not sure there is a specific term for this type of community, rather they market is as STR friendly, etc.

Best of luck!

Sounds like you don't know Orlando as well as you may think. We actually have a couple dozen great communities built specifically for STR and we have much much more than Disney that people come here for. In fact, most of my clients that own STR's near Disney say that only about 40% say they are here for Disney. Its the location to Disney that is the key, thats just where the zoning is friendly and the inventory is plentiful.

I am sure I do not know Orlando as well as you, however I do know saturation is a major issue, and I also know demand is down in that area in general. Likely more expensive airfare, higher gas prices, and Disney raising prices are not helping. We manage in Calypso Cay and frequently go unrented under $100 a night despite all of the amenities.

74 Million visitors last year to Orlando, is hardly the wasteland you are trying to peddle. Orlando even in a slow year for decades has proven an investors hotspot.
There are many reason why a property doesnt rent out, least of which is due to the unit itself.

Truly not trying to peddle anything, however can you show me a property on market that will cashflow at today's rates and projected estimate?

There are plenty, and happy to give projections via email, Orlando is different to beach or ski resort markets, and bedroom count in Orlando is king, coupled with a solid HOA. Yes, condos and low bedroom count townhouses aren’t going to perform well for investors, as they compete with hotels, but multi generations single families homes with 5+ bedrooms in Windsor island, Solara, Championsgate, Reunion and Encore will have good ROI, from my experience.

0 Reply

Andrew SteffensBusiness Member

Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes

2y

@Andrew Betts

Please post address of on market property. I’ll run airdna projection and underwrite at current rates to see if cash flow positive.

[email protected]813-563-0877

Vacation Rentals of Florida53 Reviews

Website View Page

1 Reply

Dax Jauhola

OP

Member since 2024 · 3 posts · 3 votes

2y

Geez, guys - this thread is not about Orlando. I am not interested in Orlando at all and that is a completely different type of STR community.

Suncadia is a resort property with two hotels, 400 vacation homes, four swimming pools, four restaurants, and two golf courses. It's all under the same banner and controlled by one company.

They have the ability to negotiate with the City of Cle Elum, WA, as they are probably its biggest employer. STRs are popular in this city as they create significant amounts of jobs and revenue.

I am shocked that this model is not more popular around the country. If someone had 1,000 acres in Southern California and created something similar, I would invest in that in a second.

2 Reply

Account Closed

Investor · FL · Member since 2016 · 332 posts · 388 votes

2y

Quote from @Dax Jauhola:

Geez, guys - this thread is not about Orlando. I am not interested in Orlando at all and that is a completely different type of STR community.

Suncadia is a resort property with two hotels, 400 vacation homes, four swimming pools, four restaurants, and two golf courses. It's all under the same banner and controlled by one company.

They have the ability to negotiate with the City of Cle Elum, WA, as they are probably its biggest employer. STRs are popular in this city as they create significant amounts of jobs and revenue.

I am shocked that this model is not more popular around the country. If someone had 1,000 acres in Southern California and created something similar, I would invest in that in a second.

Back to your original topic (we investors do chase rabbits sometimes)...I am not aware of such a place that is not already in an established tourism/STR market. The problem right now in building one is the cooling of STRs nationwide. I believe such a project in the right place could be a honey pot, but it is a 2 to 5 yr investment before seeing any profit. Many investors are too use to quick money over the past decade.

As for your search for your next STR, I would look for the places people are not talking about. Many people start looking at places listed in all these top 10 STR markets to invest in are published and look only there. Unfortunately by the time it is published it is too late or the writers didn't do their research properly. The one good thing you have going is you are willing to invest in states many investors wouldn't touch. I sold my California properties 7 years ago and don't care to ever step foot in the state again. I only went there originally because the military ordered me to. I only investbin places where the state that are pro-property owners and little to no taxation. So there will be some options for you to find, but the hunt for a great cashflowing property in an area where you can find cleaners/maintenance teams is a little harder. You can still find cashflowing properties in the STR areas people have been investing in, butit is just hard to find "great cashflowing" properties producing +25% cash on cash returns when planning accordingly for capex.

0 Reply

Nathan M kiefer

Rental Property Investor · south carolina and michigan · Member since 2023 · 348 posts · 226 votes

2y

Quote from @Dax Jauhola:

Geez, guys - this thread is not about Orlando. I am not interested in Orlando at all and that is a completely different type of STR community.

Suncadia is a resort property with two hotels, 400 vacation homes, four swimming pools, four restaurants, and two golf courses. It's all under the same banner and controlled by one company.

They have the ability to negotiate with the City of Cle Elum, WA, as they are probably its biggest employer. STRs are popular in this city as they create significant amounts of jobs and revenue.

I am shocked that this model is not more popular around the country. If someone had 1,000 acres in Southern California and created something similar, I would invest in that in a second.

Lol for real- somehow it got to be about Orlando lol.

Anyway, check out Ocean Lakes, Myrtle Beach SC. We own two beach houses there and its a resort/campground. The original ownership was very smart in that it has a campground component and there are over 300 houses in 318 acres. The land is leased and STR is No problem.

We bought one is 2020 and one in 2022 for 295k and 375k respectively, both are valued in the 650-725k range-each. These unicorns do exist but in my experience you have to get out and travel to find some of them.

We found this place when covid was tapering, our disney spring break got cancelled(like everyone elses on the planet) so we hid out for a month and searched states with "fewest covid restrictions" and found SC-Ocean lakes.

let us know if you find anymore!

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STR Communities zoned as STRs

STR Communities zoned as STRs

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