Investing in STRs in Davenport/Kissimmee FL

[Vijay G.]

I am a newbie investor starting to grow my portfolio, live in NewEngland and planning to invest in Davenport/Kissimmee area as it attracts millions of tourists for the parks. I am planning to buy 3-4 bed and 2-3 bath with a pool (something newly built). There are plenty of listings so I am guessing lot of competition. 

Being far way I am little bit hesitant about the following things 

1. purchase a property which your realtor looks and gives good insight and you proceed with the offer. 

2. if the offer gets accepted, Visit FL to set up everything. May be my realtor can with with this too.  

3. Can I manage the STR being long distant ?

4. As the interest rates are rising, is this good time or should I wait until late fall/Q4 to buy ?

[Abel Curiel]

Hello @Vijay G.!

I love the strategy. So many others in the Northeast are doing the same looking at this target location.

1 & 2 - you certainly want your Realtor to FIRST earn your trust by demonstrating expertise and transparency. With the amount of information available to us, it has become even more essential for Realtors to add value. Your Realtor should do this by educating you on the area, showing you how he/she runs #s to analyze your deals, justify pro-forma #s by showing comps, and educating you throughout the acquisition process so that you feel confident for future investments. If you aren't already paired with someone, @Steven Torres is a rockstar in your target market!

3. With platforms like Vacasa and guesty you can have considerable help 'self-managing'. There are also local management options that your Realtor can point you towards.

4. Rates could go upwards of 6% by end of year. Now can be a good time since you'll still be able to lock in a rate below 5% depending on the loan product. Waiting could allow you to benefit from declining property values but only time can tell if that will happen. What we can look at now are average days on market, absorption rate and # of loan applications to get an indicator on where things are headed. Overall, inventory remains low so the market is still relatively hot.

Best of luck to you on your journey!

Abel