Real Estate investment

[davidd75]

It sounds like you are doing this to have a vacation home and not as a business. Question is do you want the headache of managing an airb&b from 1000 miles away in a competitive market with no easy way out. (selling real estate is a hassle). Also make sure there are no local bylaws against short term rentals, sometimes it goes by neighborhood so check carefully. And if it isn't illegal now that can always change.
 probably better off renting.

Renting the property will probably not come close to covering the mortgage (apparently short term rentals maybe be more profitable) so that may not be an option.  Also someone told me that another advantage is that generally short term rental you can call the police if things dont work out with the renter but once they have a 30 day lease or more they have squatters rights and the resultant excruciating judicial process.

[davidd75]

yes correct it would be for a secondary residence or investment hence trying to gauge if this is feasible getting a approved using rental income from subject property etc...

multiple brokers are saying you need to put down at least 15-20% down for investment property
no way around that?

[whacked1]

multiple brokers are saying you need to put down at least 15-20% down for investment property
no way around that?

2nd home is 10%. Investment prop you may have points as well

[davidd75]

2nd home is 10%. Investment prop you may have points as well

so i can get as low as 10% for investment/second home? where?

[AsherO]

Renting the property will probably not come close to covering the mortgage (apparently short term rentals maybe be more profitable) so that may not be an option.  Also someone told me that another advantage is that generally short term rental you can call the police if things dont work out with the renter but once they have a 30 day lease or more they have squatters rights and the resultant excruciating judicial process.

OTOH you get more damage/abuse with short term rentals. Also consider unexpected incidentals.

[davidd75]

2nd home is 10%. Investment prop you may have points as well

what defines a second home?  also broker is saying they cannot use short term rentals to fund a mortgage loan for a second home

[whacked1]

what defines a second home?  also broker is saying they cannot use short term rentals to fund a mortgage loan for a second home

Yeah, you cant use income from the home (unless its a legal two family).

[davidd75]

Yeah, you cant use income from the home (unless its a legal two family).

thats interesting because a second home is partly defined as being able to be rented out (I think up to 180 days a year or more) so why would you not be able to use that rental income as income?

[bubkiz]

Make sure you factor homeowner's insurance into your math. It's not cheap in Florida in general, and insurance on a home used for short-term rentals is usually significantly higher.

[davidd75]

thanks for all the tips the more I am looking into the more I am wondering if its a smart investment and if current owners of second/investment homes in this area (Orlando) are successful/satisficed etc..

after factoring in home price (at least 500k for detached house and therefore high mortgage payment), high down payment required, high interest rates, HOA fees, home insurance;

will my short term rental in even cover

[Definitions2]

thanks for all the tips the more I am looking into the more I am wondering if its a smart investment and if current owners of second/investment homes in this area (Orlando) are successful/satisficed etc..

after factoring in home price (at least 500k for detached house and therefore high mortgage payment), high down payment required, high interest rates, HOA fees, home insurance;

will my short term rental in even cover

To be completely honest, based on your posts I've seen over the years, I don't think it would be a safe option for you. I obviously can be completely wrong.

[gozalim]

In general, you need a lot better/more specific information/research/numbers than what "everyone is saying"

[davidd75]

To be completely honest, based on your posts I've seen over the years, I don't think it would be a safe option for you. I obviously can be completely wrong.

do you know others who have invested/second home in Orlando?

[davidd75]

To be completely honest, based on your posts I've seen over the years, I don't think it would be a safe option for you. I obviously can be completely wrong.

In what way?

[Baglach]

do you know others who have invested/second home in Orlando?

I manage a short term rental of a family member in Miami and i can tell you that we hardly brake even. And in Orlando it's worse as there's less demand then miami. The costs to upkeep a short term rental is crazy high

[davidd75]

I manage a short term rental of a family member in Miami and i can tell you that we hardly brake even. And in Orlando it's worse as there's less demand then miami. The costs to upkeep a short term rental is crazy high

Thanks!

 I guess breaking even, increasing equity in the house and being able to use the property pesach etc.. is somewhat of a gain?

what are the main expenses for you?

[notyettaken]

Renting the property will probably not come close to covering the mortgage (apparently short term rentals maybe be more profitable) so that may not be an option.  Also someone told me that another advantage is that generally short term rental you can call the police if things dont work out with the renter but once they have a 30 day lease or more they have squatters rights and the resultant excruciating judicial process.

Sorry I wasn't clear. I meant that I think you should rent when you want to go to Florida for vacation. I don't think its worth the hassle, risk or tied up capital if your only (potential) upside is that you have a vacation home in Florida. (obviously this is just my opinion)

[UKinNYS]

Any recommendations for an Airbnb manager?
(multiple units in FL)

[whacked1]

Thanks!

 I guess breaking even, increasing equity in the house and being able to use the property pesach etc.. is somewhat of a gain?

what are the main expenses for you?

While I don't believe you should buy this (as noted above), if you will be kicking yourself for the next 20 years over "what you could've done" definitely do more research.

Sit down and do some underwriting. Find out what is your price range you can afford, locate those areas. Call short term managers and see how much they charge, how much is the general costs to clean between rentals, average nightly rental rates. Use sites such as airdna (and google others) to backup that data.

Then add in capex costs, water heater, boiler, pool maintenance, etc...

Now you'll have a more educated decision if you want to take this journey and not relying on some randos on the internet.

[davidd75]

Sorry I wasn't clear. I meant that I think you should rent when you want to go to Florida for vacation. I don't think its worth the hassle, risk or tied up capital if your only (potential) upside is that you have a vacation home in Florida. (obviously this is just my opinion)

and building equity in the property through the rental payments