As a real estate investor there are countless approaches and strategies you can use to optimize your portfolio. This not only keeps investing in RE exciting but it allows you to adjust your strategy based on characteristics that different markets present. Being that we are based out of Orlando Florida, we’re lucky to be in a market where it seems any class of property investment can be profitable, but one of the most lucrative investments you can make around here is actually in short term rentals! Here’s why.
What are Short Term Rentals?
You’ve likely heard of AirBNB or VRBO, you may have even been an AirBNB or VRBO tenant before. These are two of the most prominent short term rental platforms. In comparison to your “long term rental” leases which are typically 6-12 month contracts, short term rentals can be occupied for as little as one day. The situation is similar to that which a hotel offers, just not in a hotel.
Why STR’s are Beneficial:
Owning a short term rental property can be extremely profitable when managed correctly. The cash flow you can generate far exceeds the average you will see with your long term rentals which makes this type of investment very attractive if you can consistently book tenants. Not to mention str’s typically do best in areas where real estate appreciates the most, areas like our central florida/orlando communities, and being that our real estate sees so much appreciation potential over time, cash flow is not the only way you’ll see gains.
Where Do I Invest?
Destinations. Where there are destinations, there is a market for short term rentals. Orlando and its surrounding areas, our Florida beaches and beach towns, Miami and Miami surrounding neighborhoods; anywhere where people will travel to in relatively large quantities is going to be a promising zip code to invest in.
Being that our David Blaine Homes team resides primarily in Central Florida, we are seeing tons of homes for sale in Orlando that would make fantastic STR investments. When it comes to securing an AirBNB or VRBO property, you can invest in and list basically any type of property; single family homes, multi family residential, apartments, condos. You can even rent out a single bedroom in your own house.
We’re seeing all types of properties for sale in Winter Park, Celebration, Windermere and other suburbs around Orlando that we know would bring in consistent cash flow. Year round people flock to our city and neighborhoods to vacation at our theme parks and beaches.
We all love this asset class and would be happy to guide you in the right direction to make your first STR investment. Reach out and let's find one!
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