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Updated over 4 years ago,
Buying STR New Construction during Covid?
Hi everyone,
I am considering buying a new construction short term rental zoned 9 bedroom property in Kissimmee, FL. On paper the numbers I'm being shown look good despite Covid (management company is great!) What are people's thoughts on this given the negative impact of Covid-19 on the international destination Air BnB properties? I have heard that domestic STR are doing well during Covid but International Tourism based STR are hurting - like Orlando/NYC/SF etc.
I just want to know if I am making a bad investment and should look elsewhere. I’m considering it because they are giving incentives on the new construction purchase with discounts given Covid. It would be a property around $600K. The solid property management company work leads to excellent returns based on nearly 90% occupancy despite Covid but I wonder what would happen if that PM company goes under or changes management or whatever. Will I be stuck with a low performing 9 BR Orlando high tourism based property hurt by Covid? Any thoughts on this matter is appreciated.