Thank you for your question. There are many ways to invest and you will get a lot of different answers (I'm sure about that). As most will try to sell you their area of expertise :)
I mostly work with investors - it is my specialty. I started in vacation rental (STR) field and expanded out to long term as well as other types. So, I'll tell you a bit about both.
It is true that STR has the potential of generating a bit higher returns than long term, IF managed properly, and IF in right community. Vacation rental industry is shifting rapidly from "regular" to resort style setup. What do I mean by that?
- Well if 10-12 years ago almost any home that was setup for STR had the potential of doing relatively well, now the properties that have that extra features (amenities) are booked more often as well as at higher rate. As a matter of fact the new resort homes have between 6 - 10 bedrooms as the market is demanding it.
There are still handful of good communities where you can buy a decent STR property for $250,000. Example: Highland Reserve, West Haven (Shire, etc.), Emerald Island and so forth, but these are 10+ years old properties and will start "fading" soon.
Long term - On another note - there are many great long term rental opportunities in Orlando area. To be honest, you can probably get 2 properties for $250K and generate ~8%-10% ROI from each annually.
I do not want to go into it in further detail here, but if you'd like more info - please call or email me.
In conclusion - you have the option to go with either long or short term and generate about same ROI's from rental perspective. Short term rental will be a bit more riskier, but usually these homes (in right community of course) tend to appreciate more. So it comes down to creating a list of "pro's and con's" and making a decision. I'll gladly assist with it. Simply call or email me
Margus Mahar, Realtor®
Specializing in Luxury and Investment Properties
- Certified 203K Renovation Specialist
- Advanced Construction Expert (ACE)
- Dream Team Professional TM
J.C. Penny Realty, LLC.
8701 W Irlo Bronson Memorial Hwy, Suite 200
Kissimmee, FL 34747