To those who own villas or condos in Kissimmee.

[momof2boyz2girlz]

I have been looking at purchasing either a condo or small villa for our personal use but I was hoping to rent it enough to pay for most of the expenses. Am I dreaming to think this??? I think a unit has to rent for about 30 weeks to break even, is this even possible? I would appreciate any input on this subject.

 

[mrsstats]

I looked into the same thing myself. There are just too many hotels, house rentals and condos in the area. I just wasn't brave enought to make the move. If it didnt rent, I didnt have the money to lay out for those months. I would think long and hard before doing something like this in Kissimmee.

 

[athurstance]

I would say don't buy unless you are able and prepared to cover all the expenses and the mortgage yourself. We found it took a long time to get fully up and running and it takes a while to establish the bookings you need to meet all your expenses. Don't be fooled by what seller will tell you about 30 weeks of bookings breaking even and don't expect to rely on a management company to fill your villa. Neither is going to happen in my experience and by talking to other villa owners I know its not theirs either. Certainly many of us fund a much loved second home this way but we put have put an awful lot of our own money into it and continue to do so.

Angela

 

[momof2boyz2girlz]

Thanks Angela, I would not want to go into this with my eyes closed. I was hoping some owners would knock some reality into me!! I was on a site that rents the condos out and when I checked availablility some were only rented for 4 weeks for the rest of the year. That would not pay much expenses! I am not sure I want to be saddled with a second mortgage unless I could rent it out to help ease my payments.

 

[MalcolmC]

I'm with Angela on this.

We are still funding our home and probably will have to for at least another year or so. There are a lot of unforseen expenses that crop up, so you must be prepared to invest time and money into it.

It has to be viewed as a business, unless you are independently wealthy and don't need to rent it out, unlike the rest of us

 

[Lisa P.]

This is one reason that timeshares have grown in popularity. We enjoy several vacations a year for a fraction of the expense of owning a second home. When we arrive, it's all set up, clean & furnished. When we depart, we don't have to worry about what to do with it. There are rather inexpensive timeshares that may be purchased, which exchange easily into FL resorts and there are many, many nice resorts in the Orlando area.

Since you have four children (going by your ID), a 2BR sleeps 8 or possibly 3BR may work quite well for you, especially if you are able to plan your vacations far ahead of time. Renting 2BR timeshare weeks in Orlando/Kissimmee is often possible for anywhere from $500-$1,000 per week from owners. It's possible to buy the resale ownership of a week far from Orlando for close to that, then pay annual expenses of ~$350-$600 per week. Or you could find beautiful Orlando area resorts with resale weeks for $2,000-$5000 per week with annual maint under $600 and be certain of great accommodations at your home resort without wondering if the rental market will change.

These figures (even a month's worth of weeks) are a far cry from what you would have to pay to buy, furnish, insure and pay taxes & upkeep on your own place. Take a look at Timeshare Users Groups - TUG to learn more about timeshare and how to minimize the costs while getting what would really suit you. IMHO, it's not worth the money and headaches to own a vacation property unless you expect to own it primarily for your own usage and foot the bill fully yourself. Then rentals are icing, not a worry.

 

[ChiTownZee]

I have been looking at purchasing either a condo or small villa for our personal use

Were you looking at any particular condos? I'd just be curious to see what's out there and what they are going for.

 

[FLeisure]

The simple and honest answer is NO.

I have several owners who are very successful and actually make money out of their homes but the vast majority are happy to break even. In the last year, this hasn't happened.

It is possible for the house to break even but you have to be prepared to do a lot of work. Management companies can help top up bookings but you must take control if you want it to work out.

 

[Gillian]

FLeisure, do you think there are good real estate investments in the orlando area at this time? I'm always looking for a way to make money

 

[FLeisure]

Gillian,
There are always good investments to be had anywhere, the secret is to buy right !
At the moment there are some very good bargains in the resale market but you really need to look around.