All Forum Posts by: Ryan Marble

Sign up for a trial of Airdna and do some research.   
#1 Location As others have stated Orlando and Tampa (Tampa City or Tampa area like Clearwater?)  are totally different markets.     
Prime location is the most important thing.   Orlando you want to be near the theme parks.   Tampa you better be on the water.

#2 Find a niche.     I would argue that you are better off having a smaller place in Orlando that fits a family under 6 people.  There are way too many 5+ bedrooms themed homes. (oversupply).    In Tampa or Tampa area the opposite is true as big homes do not have a large market share

#3. Does it pencil out?   Can you make money.  I would say your best bet is to see if you can purchase a home with an assumable mortgage.

 You're going to have to pick your poison. Figure out where *you* want to live when you retire, then work backwards from there. I picked where I am because it's 10 minutes from my father, who is about to be 80. I had hoped that the natural draw of Disney etc would work in my favor but there's just too much inventory. If you pick a different area, you may have less demand. Or the housing costs may just be too high to cover your expenses. You can still get decent buys for the price in my area but you can't make the expenses unless you are in a very small niche and drop a lot of money on themes and the like.

What I tell people is that if it won't work as a long term rentals don't do it at all. You need to at least have several exit plans.

My top 3 tips for the Orlando area:

1. Pick another area;

2. Pick another area;

3. Pick another area.

The "everybody" niche - 2-5 bedroom, 2-3 bath - has so many people you can still find places going for under $100/night with a pool. It's just insane. The only hope of making any money here is either be on the tiny end that you can turn into a showcase for not that much money, or the high end 6-10 bedroom homes that can hold 2 families or 1 really big family. There's not as much competition on either side. I have a 4/3 3k square feet and it is a constant battle with bottom feeders for bookings, and I have a great place and all 5-star reviews. But lots of people are just looking for a place to crash and don't care about that, at least until they get there and find out the place is a dump. 

Good morning @Ryan Marble!

Orlando and Tampa are very different markets, so here are my top 3 tips for Orlando. As property managers, we see up close on a daily basis which properties perform best and are the most popular with guests…as well as the ongoing challenges.

1. AS with any RE investment identify the top locations. Our tourists prefer gated communities with great amenities, not too far from Disney - Windsor Island, Solara, Windsor at Westside to name a few. Also remember to consider the positioning within the resort - does it have a lake or forest view? Near the clubhouse? Etc.

2. Great theming. Check Airbnb listings to see what’s booking - you’ll notice lavish game rooms, bunk beds with slides, murals, etc. Make sure the home has quality furniture and items that don’t fall apart in a few years. We can help you find the right decorator if needed.

3. 6-8 Bedroom house with pool and spa. Others may tell you to go larger, but we find the most consistent bookings for this size. A pool is a must, pools with spas book better.

Many will tell you Orlando is saturated, which it is. It is also the top tourist destination in the US, and it is a year-round market with fairly consistent performance year after year. If you have the right type of home, it will book well.

What all do you want to use it for? I almost think basic would be a good fit for someone new with one listing.

Must be 20-25% for us to purchase the STR. Other investors just want the tax benefits, so it depends on your goals.

The most accurate site for data is Airdna, which pulls numbers from Airbnb and VRBO. Airdna has purchased full licensing rights, so they have years' worth of data. Free sites like Rabbu, Awning, etc., only have the last couple months' worth of data. Then they extrapolate or lean heavy into the algorithm to come up with next 10 months' worth of data. So, on those sites you do need to be careful, and I found the numbers to be all over the place. 

 It needs to be higher then the US treasury for it to make sense. you would be surprised how few people, particularly brokers, can comprehend that