Kissimmee/ Davenport Vacation Short Term Rental to Retirement house

[Courtney Barnes]

Hello, I am just starting my research and would like to know if my goal sounds possible for the area. My husband and I would like to buy a 3-4 bedroom house single level in either Kissimmee or Davenport area between 400-550K with 15-20%down. We plan to use the home currently for about maybe 2 months out the year and would like to rent it out the remainder of the year on Short term rental. The goal is to have this home pay for itself and eventually be able to retire to this house full time in about 10-12 years down the line. We are not really looking to try to make a profit as we know this area is really competitive with rentals but if we can just make enough to cover the mortgage we would be happy with that. We know we still have to pay for a property manager as well as we are out of state in Michigan and other operating cost along with utilities. We would like to not have to put in more than $1200 per month out of our pocket. How realistic would this be ?

[Alex F.]

Hi @Courtney Barnes - It is doable but the area is getting saturated.  THe good news is that the area is and will always be full of tourists.  We have had a place there for a couple years and does really well, BUT we self manage and it is now kind of a hobby where we learn as much as possible and keep on learning.....If you do go this route make sure to theme the place, and make it stand out.  There are some good PMs, but taking 10-20% off the top would make it break even at best.

Here is our place - https://www.airbnb.com/rooms/606577680390071886

The 'blah' places are NOT doing well and there is downward pressure on avg daily rate, but with a high occupancy rate it is fine.  Also make sure that you have a really good handyman....due to the number of kids the house takes a beating.  

We spend a good 4 weeks a year in the house and the wife and kids love it. I, on the other hand, always have a list of items to fix and replace :-)