Buy a FL home...sell DVC????

[shrpgrl]

We moved to Winter Haven Fl. It takes us about 30 minutes to get to WDW. We thought about selling our 2 contracts but we have used the points to enjoy Vero Beach, a Disney Cruise and just small get-aways for us and our friends and family. For us it is worth keeping and enjoying.

 

[ellochka]

I have done some calculations for Miami Beach, and if we were to buy a $250K-$350K 2BR condo close to the beach and rent it out, we would not come out ahead unless we spent at least 2 weeks a year there for "free". The rents are significantly higher in Miami Beach, anywhere from $1,200 to $2,500 a week depending on the time of the year, and those units are likely to easier to rent out.

When I looked up WDW area on Homeaway, it seemed to me that there was glut of rental units, and the prices were very cheap ($80/night vs $250/night in MB). With such low prices, I would not pay more than $100K for a 2BR/2BR condo in Orlando, and I am not sure it is realistic. Also, you likely want a condo (so you don't have to worry about security and landscaping) that allows weekly rentals, and that will likely come with some costs. One more thing to think about is whether you want to buy something that is optimized for rental or buy something optimized for your own needs. These are two different things. If you buy your family would enjoy, it might be hard to rent.

The last factor is your tolerance for the PITA of being a short-term landlord. That was the factor that turned us away. We want a vacation home we can enjoy, not a constant headache or a second job.

 

[Iowajes]

A huge cut, plus taxes, and hoa fees, and insurance and maintenance and etc etc.

Presumably the owner's share is what is going to pay for the taxes, hoa fees, insurance, maintenance, etc.

Most of the people I know who rent their vacation homes in Florida rent them to pay for them, so they can then enjoy them themselves, not to make a profit past that. It takes shrewed management to make a profit- and generally that doesn't include using it yourself. But buying a vacation home that also has rental potential is better than just having a second house on its own.

 

[seasheller]

I don't know anything about real estate so I'll let others direct you there. But if you did buy the home, and have utility bills for that address, you are considered a part-time FL Resident and are qualified for those Disney discounts.

Link to that information: https://disneyworld.disney.go.com/planning-guides/in-depth-advice/part-time-florida-residents/

We have a seasonal home in Florida and were able to get Florida ID's a few years ago by providing our title and utility bills. The ID's are good until 2017 and we are able to use them to get Disney resident discounts. BUT from what I understand, the law has been changed and Florida is no longer issuing ID's to part time residents. I know several people that own seasonal Florida homes and they have not been able to get resident discounts since they did not apply for the ID's when they were available.

Home owners insurance in Florida is very expensive! Our Wisconsin home is worth three times the value of our Florida home, but the insurance here is one-third the cost of the Florida home and we do not carry flood insurance which is required if you are near the water in Florida.

 

[Traveliz]

We have a seasonal home in Florida and were able to get Florida ID's a few years ago by providing our title and utility bills. The ID's are good until 2017 and we are able to use them to get Disney resident discounts. BUT from what I understand, the law has been changed and Florida is no longer issuing ID's to part time residents. I know several people that own seasonal Florida homes and they have not been able to get resident discounts since they did not apply for the ID's when they were available.

Home owners insurance in Florida is very expensive! Our Wisconsin home is worth three times the value of our Florida home, but the insurance here is one-third the cost of the Florida home and we do not carry flood insurance which is required if you are near the water in Florida.

I do not have the FL ID...I DO GET FL DISNEY discounts. I have the FL annual pass and the TIW with the FL discount. It is not required to have a FL State ID for them. You need to tell your friends to print off the requirements and take that with them when they are getting their tickets if they are having problems. I just renewed my FL annual pass last week using my IL driver's license along with a print out of my FL bank account (showing my FL address.) Other acceptable pieces of FL proof include any state ID AND FL banking, investing, government mail (tax bill), car registration or insurance, mortgage, utility bills. From the website:

Proof of Florida Residency

For each ticket purchased for an adult you may provide any of the following: Florida driver's license, Florida state-issued ID card (must have a Florida address, Florida based military id.

If you do not have one of the identifications indicated above, then for each ticket purchased for an adult you must provide one of the following dated within the last 2 months evidencing a Florida residential address together with a corresponding picture ID (passport, driver's license, state-issued identification card): monthly mortgage statement; Florida vehicle registration or title; homeowner's insurance policy or bill; automobile insurance policy or bill; utility bill; mail from a financial institution, including checking, savings, or investment account statement; or mail from a Federal, State, County or City government agency.


Liz

 

[Jaime4004]

Presumably the owner's share is what is going to pay for the taxes, hoa fees, insurance, maintenance, etc.

Most of the people I know who rent their vacation homes in Florida rent them to pay for them, so they can then enjoy them themselves, not to make a profit past that. It takes shrewed management to make a profit- and generally that doesn't include using it yourself. But buying a vacation home that also has rental potential is better than just having a second house on its own.

I agree! My parents have one and they just about break even by renting it. They use a property management company which handles just about everything. They made a small profit when also renting it out themselves through Homeaway, but didn't want to deal with the headache anymore. They rent it probably about 50% of the time just through the management company. They bought it as a 2nd home/vacation home but plan to move there when they retire. The renting now helps offset the cost. I love it, always have a place to stay.

 

[nalajms]

Proof of Florida Residency

For each ticket purchased for an adult you may provide any of the following: Florida driver's license, Florida state-issued ID card (must have a Florida address, Florida based military id.

If you do not have one of the identifications indicated above, then for each ticket purchased for an adult you must provide one of the following dated within the last 2 months evidencing a Florida residential address together with a corresponding picture ID (passport, driver's license, state-issued identification card): monthly mortgage statement; Florida vehicle registration or title; homeowner's insurance policy or bill; automobile insurance policy or bill; utility bill; mail from a financial institution, including checking, savings, or investment account statement; or mail from a Federal, State, County or City government agency.

It sounds like you don't even need a FL residence really.... just open a bank account, have it addressed to a friend's mailing address in FL, turn off the paper mail and you're good to go! Interesting

 

[hsmamato2]

sounds to me like 2 different animals.... one (dvc) is a vacation thing, prepaid accomodations for the next 42 years.... yeah it costs a chunk of $$$ but it's about taking trips to disney etc.
Buying a home is different, it's about....owning another home,and all the responsibilty that goes with it. (and $$$$$$$)
I don't think comparing the 2 based on 'discounts' to Disney is appropriate....
OP if you're vacations,and a few discounts,then keep your DVC.
If you're thinking about jumping into home rentals and all the fun that entails.....well then if it were me, and I wanted to own/rent a FL home, I'd sell DVC.....(since it's not an investment, it's a prepaid hotel,and if I owned a home nearby,why would I need that payment any longer?)
again, 2 totally different things IMHO...

 

[seasheller]

Thanks for the update on the Florida residency requirements to get discounts. Won't worry now when my ID expires in 2017.