All Forum Posts by: Shane Petersen

I have an Orlando STR and I think Mark is right about how your house will rent out, for the most part.

I have 3 peak season: Spring break, summer, holidays (specifically Thanksgiving weekend and Christmas to New Year's).

You are eating up one of your peak times by being there in March/April. However, summer is an even bigger peak time and you might get some visitors over the summer.

Orlando is a niche market that is different than everywhere else. You're competing directly with Disney, which is the king of hospitality. I think your strategy would be trying to be rock bottom pricing and needs to be very close to Disney/Universal. The problem is, that type of guest is often harder on your property, so it may not be worth the upkeep.

I really doubt you'll turn a profit, but you might offset your costs. I would do your research and check to see if there are other mobile homes being rented and how well they rent.

@Bill B. and @Shawn McCormick thanks for taking the time to answer my question and provide your insights. I appreciate and avlue the feedback you've provided. For what it's worth, I did Google search and search the site for this question, but only got irrelevant results. Apparently I'm not searching for the right thing.

I'm aware banks won't recognize the value of the rental income because there is no lease, so my target buyer would be an investor or investment firm looking to pay cash. It sounds like from Shawn's experience that something like that doesn't happen currently, so I'd be trailblazing, if I could get it to work. I have to admit that's a solid deterrent, by itself. I might have a better shot at it if build a portfolio of properties and sell them all together as a business.

@Bill B. for context, the home is in a dedicated STR community, so it's safe to say there's a 0% chance of running into troubles like you mentioned in Oahu or Las Vegas.

Also, like I said, those numbers are 100% made up on the spot. I'd need to sit down and figure out my real numbers over the last 3 years. Out of curiosity, from your perspective, what ROI (or other relevant KPI) would it need to have to grab an investor's attention?

I have a STR that I've owned for 3 years in the Orlando market. I know commercial properties are worth more if they are sold with a tenant in a lease. Does the same apply to a STR (of course there's no lease, but there are reviews and established revenues)?

I have a local property manager that is co-host on the AirBnb listing that will continue to manage the property. At this point everything is on auto pilot and someone could buy the property from me and just collect the rents.

So, as an example that I'm making up for simple math: If the property is worth $700,000 and it's been consistently bringing in $50,000/yr in net revenue, could I sell the property as a business for more than the property is worth (eg $850,000)?

I am aware AirBnb does not allow you transfer reviews; That's another topic for another day. For the sake of the argument, let's say I have figured out how to handle that.