Anyone purchase a vacation home in Kissimmee?

[disneyleslie]

Has anyone purchased a vacation home in Kissimmee with the intention of renting it out? Are their any forums on the web where you can hear from owners who have done this? Looking to see the pros and cons and if it is a good investment.

Thanks so much for any insight,
Leslie

 

[Alexle2007]

I have a friend who did. Don't think they are on any forums. Please before of the community you purchase from. I know they have to own the home for a year before they could rent it.

 

[kathy884]

Most discussion that I've heard say that Orlando is so overbuilt, that there is a lot of competition for rentals, and that it's tough to break even. There is typically a negative cash flow. Some wish they had never invested. You might do some searching of some old threads. There were several people who listed out their monthly expenses and occupancy rates etc. There is also the need some owners said to constantly update the properties to compete. // I think most of the discussion, though, I saw was for super close in neighborhoods, not sure if those were Kissimmee (e.g. Windsor Hills, Emerald Island subdivisions).

All I can offer in personal experience is that I can rent a vacation home that is very high quality in Orlando for much less than any other place I vacation. As a renter the quality for the cost is really good. I would assume that as a landlord that wouldn't be great news. IMHO Orlando has been overbuilt in terms of vacation accommodations since 1971 when WDW opened and this is still the case.

 

[beck02]

I doubt it's a good investment, but I don't own there. Since I doubt that you live locally, you'll have to have someone manage it. Costs would be around 10% for that, taxes & insurance for the property can run high, and you'll have to pay for cleaning the property between each renter. And grounds maintenance costs. Since the competition is fierce in Orlando, it would have to be a nice or nicer house, close to the parks, etc. which all mean higher $$$. You'll have constant maintenance/upkeep issues. Worse than your own house, because renters won't care as much for the furniture & you'll have greater wear & tear, and again, the furnishings would have to be fairly nice for the market. I think there would be better places to make money, unless you are thinking you'd be using it part of the time and/or getting some other perk out of it.

I have a rental house that is out of the state I live in. It's been OK, but certainly no cash cow, and if I had it to do over I wouldn't. After 5 years it's maybe starting to pay off. It's valued at less than I paid for it, although that value is slowly coming back up. It would have been profitable from the get-go except the taxes & insurance. And the on-going maintenance... It was a new house, but there's always some issue that needs attention. This month it's the steps that have to be redone, for around $500 for materials & labor. Mostly labor. I wouldn't recommend anyone try a rental/vacation house unless they lived locally & could take care of part of the issues themselves.

 

[Darcy03231]

From what I've read on similar threads the overall consensus seems to be that if you want a vacation home and are going to rent it to off-set some of the costs of owning it, go for it.

If you're looking at it as an investment/money maker and can't cover all of the monthly costs without the rental income, don't do it.

 

[Jake&IzzyLand]

I agree, if you plan to buy a vacation home anyway, then renting it out is a bonus. Buying for the sake of making a profit will be a disappointment.