Home Buying in Davenport>Question Details

richardmhawk…, Home Buyer in Davenport, FL

How much to run a 3 bed villa with pool. I hear $13-$18K. After peoples true examples of all costs to run a place. Thanks

Asked by richardmhawkins, Davenport, FL Tue Feb 26, 2013

True Ownership Costs

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I work in the UK, but for an airline which means although a long old flight I can get to Orlando,Tamps,Miami for around $288 to $320 standby (If the plane is full I get stuck at the airport but msot times it is ok).We stayed in a Davenport 3 bed last year and were impressed. But big bust up with girlfriend, had estate agents round and looks like we are selling. I love golf and it's so cheap over there. I want a place I can afford to pay off so I can spend 6 months at a time in my retirement (as got no green card). But I would need some rental income. I would prob have say £35,000 deposit (which is $53,000 in todays money. When we stayed there were loads of 3 beds for around $130,000, bigger seemed to be $160,000 (last Feb). I have several thousand in sterling savings (enough to pay 6 months mortgage, have an Amex card which I am told helps, No loans, no defaults, should have a decent credit rating, being paying equivalent of $1320 a month in mortgage payments (which I can prove). I would prefer my own home with pool as long as I can afford to run it, even make a slight loss. This may not happen but as a couple we talked about it so maybe we downsize in uk I get my split of the money and invest my share in this venture and we live in her house in the uk. The big sticking point is getting a mortgage at a decent affordable rate for this to be a possibility. Won't happen until after June but need to plan now
0 votes Thank Flag Link Tue Feb 26, 2013
Hi Richard,

I do have a simple excel spreadsheet that you can use to model your costs and returns. As Bernie implies, the real money to be made in short term rental is in the larger pool homes. Which is what he and his wife do very successfully. (Bernie is my next door neightbor.) I typically tell my clients to shot for at least 4 bathrooms. As I note in my popular vacation condo blog (see below) there is a ton of competition with suite hotels and Disney. It is a tough game to win. Frankly if I had to choose between a 3/2 villa in a remote location in Polk County and a 3/2 condo at Windsor Hills, I'd pick the condo everyday of the week. You have a much better chance of making a profit.

Godo luck. Short term rental can be a great business, but only if you treat it like a business and work at it.

http://www.trulia.com/blog/mark_lemenager/2011/08/vacation_c…
0 votes Thank Flag Link Tue Feb 26, 2013
Hi Richard:

It depends on where have you purchased.

Items to remebera are:

1) Tax (Could be any where between $2K to $5K - there are all rough numbers that can change drasatically depending on where the home is and what is the price)
2) HOA (For a home usually between $50 to $150/Month - It can go upto $400/Month in some communities)
3) Managment Company Cost ((Could be anywhere between $100 to $250/Month + anywhere from 20% to 50% of your rental reveue depending on the comonay plicies)
4) Maintenance Cost (Pool & Lawn Care). It can run aroun $200/Month
5) Utiities (Around $250/Month)
6) Cable and Phone ($100 Month)
7) Your Property Insurance ($100 to $200/Month)
8) Tenant Insurance ($50/Month)
9) If you are planning on renting it out you have some cost to get your tax ID and licenses,...(may $300 to $400/Year)

Below is the link to pool homes in the area:

http://abidhendi.orlandopropertiesonline.com/listings/areas/9995…

Let me know what you think?

Abraham Bidhendi
Top Producer Realtor® with over 25 years of experience
Awarded as Exit's TOP Buyer side Transactions for the State of Florida
We have had 142 successful transactions during the past year alone.
Exit Realty Access, LLC
Direct: (407) 744-2533
Fax: (407) 444-9925
Email: REOsofflorida@msn.com
Website: http://abidhendi.orlandopropertiesonline.com
Kissimmee Office: 391 N. Main St., Kissimmee, FL 34741
Altamonte Springs Office: 660 Palm Springs Dr., Suite D, Altamonte
0 votes Thank Flag Link Tue Feb 26, 2013
Hello, you are correct. I have been working the short term rental market as a home owner for 16 years and an agent for 6 years. I have owned everything from 4 bedroom homes to 7 and 8 bedroom homes and still do. A 3 bedroom home without a mortgage will run you per year between 10 and 15. This will go up and down every year depending on how many guests you will have each year and pool heat is one of the most expensive part of the utility bill you will have. The good news is when a guest wants the pool heated they should be paying between $20 and $30 per night to heat the pool. With a 3 bedroom home, you should at least break even to maybe making a little money at the end of each year. This will depend on the community you have the property and also a big help would be if it is in a gated community within 10 miles from Disney. Gated communities you will have an HOA fee but, you will normally have more guests requesting gated communities and return guests in a gated community. I hope this will help you. You can contact me at any time with all your questions. Thank you
0 votes Thank Flag Link Tue Feb 26, 2013
That is a hard one to pin down as each house varies but the price range you give is a good estimate. It could be more or less depending on a variety of issues. A few of which I have listed below.

1. Location of the house. HOA fees, taxes and utilities could vary depending on the subdivision, city, and county.
2. The age of the home and the maintenace it has had to date. An older home typically have more repairs needed but if it has been well maintained these could be fewer.
3. How you or your management company manage the home. There are numerous ways to reduce expenses with preventative maintenance.

The big keys to offsetting the cost of any vacation of is bookings and a good management company who takes pride in the condition and appearance of your home. Also as the owner you need to be proactive for getting bookings and keeping your property up to date.

Let me know if you have any other questions as this is just the tip of the iceburg.

Thank you,

Katie Sweet, Realtor
Watson Realty Corp
863-990-5141
katiesweet@watsonrealtycorp.com
0 votes Thank Flag Link Tue Feb 26, 2013
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