All Forum Posts by: Wilson Vanhook

Investors seem to generally be looking for at minimum 15%-20% of the purchase price in gross income (IE $1mil property should net at least $150k annually).  Sellers/realtors are trying to set the market at 10% (so 10x gross income = home price).  If you look in Destin every house is listed at 10x gross income.  So if income is $150k it will probably be priced around $1.5mil.  

As an investor I'd want more than $150k gross out of a $1.5mil home.

My place in Disney I am projecting (and on pace for) $160k for $568k purchase so 28%, but I put $65k into theming.

My place in Southern Utah I should do a little over $100k on $515k purchase so around 20%.

But those homes were purchased in early 2021 and prices have increased such that those numbers are different in those markets now.

People that bought pre-covid in a vacation market should be killing it right now.  Like 30-50% of purchase price in gross revenue doable.

I bought it at 568k in May and renovated it, going live in October.

The same house is probably closer to $650k now.

"Renovations" were an arcade garage build, and two Disney themed rooms with custom bunk beds, slide, etc.  I spent $20k on the arcade garage, $20k on the main theme room, and $5k on the other more lightly themed room.

A 10% down loan is for a 2nd home. The bank will want you see where your downpayment is coming from and loan will need to be in your name (or you and spouse) only.

You mean multiple times this week right...? :-)

@Wilson Vanhook there are dozens of cities across the country that can produce a good return when it comes to STRs. The questions you need to ask yourself are (1) what cash on cash return do I want? (2) what can I afford? (3) do I want to invest in-state or out-of-state? (4) Am I comfortable investing in a saturated market with my first STR? (5) Do I want to manage myself for higher returns or hand it off to a property manager who will take 25-40% of your gross revenue?

Good luck and DM me if you have any questions!

I have one near Disney.  There is plenty of meat still on the bone there and it's a pretty simple formula to do well.  But if the state/county pillaging your pocket book with ridiculous made up taxes is frustrating to you then you're not going to find Florida much better than California.

I just got my furniture tax form in the mail today.  I have to pay an annual tax on the furniture I own in the house.  This is only about the 8th stupidest tax I have to pay here.

But, the returns are still good.

Not another thread with the exact same question. 

Please use the search function to look for your answer that has already been discussed multiple times this year.

@Wilson Vanhook I'm in Orlando and can attest that we are not capped out yet, especially if you would consider larger homes 5+ beds. There are much fewer of them than condos, condo-tels, and townhomes, so demand for those is still very high. When the planes start flying, our numbers here will surely beat most other markets. Orlando is much more year round than any beach, ski or mountain area that I know of and is literally built for STR. Hope this helps a little. Good Luck!