Quote from @Ingo Bothe:
Hi everyone,
New to RE investing, considering STR in Florida to combine side business with pleasure (who wouldn't want to fly south to invest in the Winter).
Interested to hear any experiences and watch outs
When looking at doing short-term rental investing in Florida, the number one thing that you need to look out for is zoning and HOA regulations.
The Orlando Disney market is heavily saturated in the smaller size properties (4 bedrooms or less) rented on Airbnb. Properties, smaller than seven bedrooms have an immense amount of competition. This means hosts have to work extra hard to make their unit unique and stand out so that they can charge a high enough nightly rate and remain occupied enough for the property to cash flow well. Your largest expense with short-term rentals is Property Management. It is possible for people to self-manage these remotely but unless you've already managed a short-term rental, there could be a steep learning curve. The number one factor in your profitability is going to be the operator for your property. So, self-managing may not be the best choice unless you are going to be able to dedicate the time to initially set up the property, get good vendors in place, and optimize your digital presence on all the booking sites. Operating a short-term rental needs to be looked at as running a hotel if you want to achieve the highest levels of revenue. The best performing short-term rentals in the Orlando Disney area are larger homes in resort style communities. These homes often have an entry point of $800,000+ and may require additional capital investment right away to update furniture, cosmetics, or do unique theming in the property so that it can generate maximum revenue from day one.
I can't say too much about the Tampa or St. Pete markets as I do not pay that close attention to the Airbnb market over there. I have friends and colleagues that manage airbnbs in the area and my understanding is that the price point for entry is lower and competition is not as high. You will still need to focus on your operations and providing a five-star accommodation and service experience to your guests. Property's over there do not require nearly as much customization and theming, but should still have a design appeal so that you can generate the highest nightly rate possible. Best properties should also have a pool and the pool should be heated. If You find a property with a pool that is not heated, a pool heater could and should be added.
I always encourage new investors to get involved in a local real estate community. Networking can be an essential part of your investing journey.
