Central Florida Vacation Rentals

[Jeff Bullian]

Dear all,

I wanted to see if anyone had general views on the Central Florida vacation rental market.  I'd be particularly interested in thoughts on two cities: Kissimmee and Davenport, both of which have good proximity to Disney and have a large number of developments zoned for short-term rentals.  

Overall, my initial research suggests that high short-term cap-rates may be feasible, but I'd be concerned about the lack of scarcity of land; presumably someone can just start building another newer-and-better development so supply might increase significantly.

It seems Kissimmee is slightly skewed toward families visiting Disney while Davenport may be a bit more on golfers, but would love someone to corroborate this.

Also, I would seek to invest and manage these properties (no more than 1 or 2 to start) remotely.  Does anyone have a view on the best property management companies in these areas?  In particular, I would want to handle the front-end (e.g. reservations, availability, pricing) on my own but would seek to retain someone to do cleaning, servicing, key exchange, property management, etc.  I know the full-service approach can be quite expensive -- 30%+ of gross revenues -- but am wondering if anyone is willing to perform only some services.

Last, my research indicates that bank financing is typically available at up to 80% LTV without PMI for these vacation properties, depending on credit.  Can anyone corroborate this?

Thanks so much for everyone's input.  Would love to make connections in the area as I continue to investigate.

All the best,

Jeff