We are considering buying a second house as an investment property in the Orlando area. We'd rent it out on a weekly basis through a management company. Help us decide whether or not this is a good idea.
We want to diversify financially by adding real estate to our portfolio. We travel a lot and always turn to VRBO for vacation properties, so we thought, let's buy a property and rent it out ourselves!
The details: We are homeowners, so we know what owning a house entails. We live in the NYC area and first considered buying in the Hudson Valley, but decided the Orlando area is smarter from a financial standpoint.
We can spend up to $300K. We are looking at houses in the Kissimmee area because it's next to Walt Disney World and in an area that draws 60 million visitors per year, and because everyone says it's among the best places to invest
. We've had some initial conversations with a couple of real estate agencies and management companies, including Villa Direct
. Most of them are (of course) upbeat about the possibility of 60% occupancy and positive cash flow for a house in our price range.
We've done the basic research. We know that proximity to the Orlando attractions is important, as is the house and its amenities. We know that on top of a mortgage we'll have the usual expenses, plus fees for a management company. We don't expect to get rich but we won't do this unless there's the likelihood of a positive cash flow while gaining equity in the house.
So: Is this a good idea or not?
More specifically, do you have any experience in owning and renting out a vacation house? Bonus points if it's in the Orlando area. But we're open to all thoughts, ideas, recommendations and general wisdom about this kind of venture.