Hi Tyler - I understand your hesitation, but the Orlando market lends itself to self managing from a distance better than just about anywhere else. The reason is simple, there are more hospitality professionals in Orlando than anywhere in the country, perhaps the world. Meaning, you can piece together a great ground team, while not paying for services you don't need or want. I have a "Property Manager" who coordinates all cleanings and maintenance, handles ALL renter issue response, 7 days a week, and handles all of the upkeep needed with the property (preventive maintenance, pool care, pest control etc) . In our case, the HOA handles lawn care, trash removal, etc.
This means I get all of the renter response, and all property function coordination, for a few hundred bucks a month and I really just handle the bookings from a distance (i'm based in Michigan). This saves $10,000 - $15,000 a year per property (I have 3 in Florida), and I just have to manage the channels and handle financials and paperwork, which i'd just assume have control of anyways. I would estimate that I have 2-3 hours a week into my side. That's $30,000 - $40,000 net, more, for my little portfolio and well worth the time investment.
Additionally, the management in the Orlando market usually falls into one of two categories; terrible, inexpensive management that will do anything they have to do to fill up your calendars to jam your property full of guests so they can make their commissions, while allowing your property to fall into disrepair. These companies have very low retention, for obvious reasons, so their model is to essentially milk it for whatever they can before they get fired. The second category would be the good or even great management companies who will take great care of your property and will do a much better job with the guest experience. However, they charge 20-25% commissions on gross rent, and nickel and dime you with fees every step of the way. In the first scenario, you make a gross profit but it will most likely disappear when you consider the wear and tear and the replacement costs associated with that aggressive and reckless approach. In the second scenario, your house is in better hands so the asset is cared for but the management company soaks up all of the profit.
Either way, these types of purchases should be for a lifestyle investment (somewhere to escape to a few times a year, and pays its own bills when you aren't there), or a cash flow investment (in which case, you need to consider self management, in my opinion).. You cannot buy these properties with any assumption made for appreciation. They don't float up and down with the rest of the real estate market, they feel more like businesses than they do homes in that regard.
