5 THINGS I LEARNED from Losing $$ On Florida Vacation Rentals

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  • Опубліковано 21 сер 2024

КОМЕНТАРІ • 109

  • @LegacyWealth
    @LegacyWealth  Рік тому

    So I may not be an expert in Florida vacation rentals, but I would absolutely say I'm an expert in Multifamily Investing. Over the past 5 years, I've built a real estate portfolio of over 4,000 apartment units worth around $400 million dollars. And I teach people how to do it! My next Commercial Empire event (where my team and I teach folks how to find, fund, and operate apartment building investments) is coming up soon. This is an amazing program that has helped hundreds of people scale into apartment investments. We also might be changing things up soon, so you should get in on this event while you still have a chance. Check out commercialempire.com to sign up!

  • @RonYates1
    @RonYates1 Рік тому +4

    I usually never click on 20+ minute YT vids, but I'm glad I did. I was just looking to get information on what to look out for when purchasing vacation rentals (particularly in Florida) as we are looking to buy, and WOW, this was an amazing story! We actually stayed in a rental property just as you described in the Solara community. I have gained so much insight from you and I really appreciate you sharing your negative, and positive experiences, and most importantly what you learned (including the low-rate seller financing tip). Glad you didn't get wiped out with your Orlando investments. Brillant ways of converting traditional liabilities into cash-flowing assets with endless benefits. Thanks Tim!

    • @LegacyWealth
      @LegacyWealth  Рік тому +1

      I really appreciate that man! Thanks for watching!

  • @RiverRev
    @RiverRev 2 роки тому +8

    Sorry you didn't do well in the Disney market. It is true that the supply of houses and hotels affect demand and the bottomline price. We have done very well in the area, making an annual profit over the 5 years of ownership - including a small loss in 2020. However, what we found was that dressing and marketing your home in a value niche makes a good return on investment. For example, we dressed our home in a mid-range, Hampton Inn quality and priced our home in that range and our pictures reflected that quality. We never lowered our price more than our established off season rate. If you dress your house like a Motel 6, and price it for a Motel 6, you get Motel 6 clients.

    • @LegacyWealth
      @LegacyWealth  2 роки тому

      Glad you're doing well there! And thank you for watching!

    • @BryantSalus
      @BryantSalus 2 роки тому +8

      The problem you faced is being average. Im not sure by what metric his listings were in top 1%. Owners like this ruin the rental market here. Disney charges several hundred nightly for a hotel room. There is no reason for any owner to drop prices to $250 for a large house. Focus on revenue not occupancy. Keep the guest quality high and your place won’t get trashed. I’m in Solterra and base price is $750. Never go lower. 1 week pays the expenses for the month. When evaluating supply focus only on the specific segment you are targeting. At those low rates you are targeting the wrong demographic. That being said… people buying this year at double the house price are not going to make it. But I’ll be glad to pick them up at a discount later. Storey Lake homes like his were being sold for $800k this year. That won’t cash flow.

    • @RiverRev
      @RiverRev 2 роки тому

      @@BryantSalus Couldn't thumb this up enough.

    • @ToddBizCoach
      @ToddBizCoach Рік тому

      @@BryantSalus what amount of ConC returns are you experiencing in Orlando area? I would not spend any management time unless able to make at least 20% ConC return.

  • @JerryBarker
    @JerryBarker 2 роки тому +4

    Great video Tim. Thanks for taking the time to document the pure investor viewpoint.
    Overall it's what we hear consistently from investors. It's especially hard making a return with 100% financing - and then of course Covid kicks in.
    Shame you didn't hold on to them for just a little bit longer, we don't get big appreciation bubbles often. Storey Lake is off the charts, you may have gotten close to doubling your money for that lake unit if you had sold in early 2022. Not quite so much in Solara - but still a solid uptick there too.
    You must have seen a lot of potential in the first one to go buy a second. That part, I had a hard time understanding. Would love to hear your thinking?
    Your overview on the resorts are spot on and it was nice to hear the natural enthusiasm for the unique products and locations. That's really what it's all about. I'd bet you have a lot of priceless family memories.
    That is your "lifestyle investment" right there!
    You also pulled 3 months of family time and team mastermind events - that's 25% of your potential annual income or even more if you were using them during peak/holiday rental periods.
    It's hard to make the numbers work if you use them and are carrying 100% financing.
    But they are lots of fun and it did sound like you enjoyed ownership.
    Wish I'd had the chance to meet you during your research.
    Best of luck in all of your investments!

  • @bamrindn8888
    @bamrindn8888 2 роки тому +15

    Thanks for sharing. The Story Lake Resort prices have gone to absurd levels. Condos are selling for $400k.
    As a 25 year old who just spent the last 5 years saving up its quite demoralizing seeing how high real estate prices are

  • @digitalportraitist
    @digitalportraitist 2 роки тому +3

    Thanks for being so transparent always wondered how these houses managed to make ends meet, the South American aspect never crossed my mind. Best of luck.

  • @OrlandoPropertyAdvisor
    @OrlandoPropertyAdvisor 2 роки тому +5

    Interesting perspective, I agree prices have gone too high post pandemic for this type of asset, they need to level off or correct slightly for inferior units. That being said, “extremely unique” homes in Championsgate, reunion, Windsor hills, and other major STR neighborhoods will have “winner” properties that get rented for $350/ night still, if they keep up their finishes, reviews, and have the right combination of amenities. But when running numbers for clients, if they are borrowing at more than 6%, the profit margins are slim at these entry prices even for top performers. And thus, the “soft spot” in our Orlando market will be outdated STR’s that need work, as this is a more volatile market which you eluded to than the long term rental areas of lake Nona or winter garden. $200-$250/ft is where we are at right now for quality STR’s that get top rental amounts. You touched on the key value prop/ being able to use it for yourself. It’s a needle in a haystack search that requires local knowledge. Why does one neighborhood rent higher than the other? Why are the fees higher? Orlando will continue to sprawl but value and location in the eyes of the traveler is the draw. And hotel prices keep rising. “sleeps 24” is great but it has to have the size and space too, without being too big. I guess the takeaway here is find a motivated seller in a premium neighborhood and improve it to maximize profit. Awesome video bro watched the whole thing you are a very smart businessperson and put things in logical terms. Subscribed 👍🏽

  • @ZitofskyCapitalManagement
    @ZitofskyCapitalManagement 2 роки тому +6

    Great info. So true as I’m now doing some short term rentals and stayed out of Disney for the same reason. Love your vision on it. Thanks

  • @AmplifiedHealing
    @AmplifiedHealing 2 роки тому +3

    Very helpful video! I was looking into Orlando/Kissimmee and I realized the rents were so incredibly cheap and a ton of supply… I am looking into the mountains now. I agree- unique stays are so important to stand out!

  • @MelaninMommyMillionaire
    @MelaninMommyMillionaire 2 роки тому +5

    This was extremely helpful as I am currently looking into buying a home in Orlando near Disney and now I have some thinking to do. Thank you for this video!

  • @ladyjane8855
    @ladyjane8855 2 роки тому +2

    STR is best used to support a second home. The ROI is substantially lower than long-term rental due to lower occupancy, utility bills, cleaning, management, etc so the best you can hope for is help with the running costs. The Orlando residential property market is hot right now so that's where investors are buying.

  • @joelieber216
    @joelieber216 2 роки тому +4

    Great information, thanks for sharing and being truly authentic.

  • @TheJmgroover1
    @TheJmgroover1 2 роки тому +3

    Incredibly valuable info Tim, for your sake glad to see them go even though I stayed at Solaro and the whole place was exactly 💯 as you described!!
    Appreciate you as always 🙏

  • @actionfaction2558
    @actionfaction2558 Рік тому +1

    That’s really interesting…I was thinking of getting a vacation home in the Orlando area, for BNRB type rentals; but I also want a house in the area because my Mom’s family is from that area, and it will enable us to see them more frequently.

  • @beehappy32832
    @beehappy32832 2 роки тому +2

    Thank you so much for being so open and truthful. The video was super informative and interesting facts. Sometimes we get hot head and think with the heart. God Bless you and your team and families.

    • @LegacyWealth
      @LegacyWealth  2 роки тому +1

      Great takeaway! Thanks for watching!!

  • @iatchiokou4410
    @iatchiokou4410 2 роки тому +2

    I hear you tim. I purchase in Orlando 8 years ago and run the short tern rental. I was okay as investment snd a vacation for my family. However, we have to rely on management company znd most of them are not trustworthy and they rip you off in most case. A lots of maintenance znd repair as well. My wife found the city is too busy and not safe to drive around without me. Therefore we sold the home 5 beds, 4 bath pool home and make some profit and bought in Sarasota.. a nice beach city and much slower pace. It us hard to believed that j making good money every year now that cover all the expense and my vacation expense as well. It is the best decision we make. Orlando us too much competitive in price and location. In all, I am glad that j step in the short term business and bought these Incredible home st its lowest market rate.

    • @LegacyWealth
      @LegacyWealth  2 роки тому

      Good for you man! Thanks for sharing!

  • @SebastianPatten
    @SebastianPatten 2 роки тому +2

    Subbed for your honesty and directness. Thanks and I wish you max prosperity :)

  • @funvideos2048
    @funvideos2048 2 роки тому +2

    Wow I was about to go under contract for a townhouse in Championsgate. This was very helpful

  • @CarlosMafla
    @CarlosMafla 2 роки тому +2

    Thanks for sharing all this info. I was actually very interested in buying a condo in Storey Lake last year, according to AirDNA it wasn't a bad investment, I guess I would need to keep doing some more research.

  • @douglasthompson9482
    @douglasthompson9482 Рік тому +1

    Some great ideas. I have learned first….buy only if you can pay cash, second….don’t buy in Florida as it is very unstable market, third…I would only buy in premium stable areas such as Palm Springs, San Diego, definitely not Florida. Also pick areas that are large demand and small supply even in common places. In short I prefer to own in my own town rather than abroad. This makes common sense.

    • @LegacyWealth
      @LegacyWealth  Рік тому

      Easier to manage in your own backyard too!

  • @CarolinaHustler
    @CarolinaHustler Рік тому +1

    Dang N.Charleston SC. Thats my area, Booming here lot of demand, prob more than Disney lol.

  • @dawannwilliams6301
    @dawannwilliams6301 2 роки тому +2

    I really enjoyed this video. We live in a Northern state which isn’t retirement friendly and we will be retirees in our 50s in a couple years and where looking to buy a condo near Orlando as a tax shelter to live primarily during the winter months and to rent during the summer and vacation season. We were also considering an additional condo near Atlanta for more of a rental as we do visit family several times a year. You have given great information ℹ️ to use even on a smaller scale. Going to look at some of your other videos. Thanks for sharing.

  • @ReignRegime
    @ReignRegime 2 роки тому +2

    Great video, Great information. A lot of the issues sounded like bad luck/timing.

  • @dedeestump9249
    @dedeestump9249 2 роки тому +3

    how are your investors paid? 4% preferred return (like a loan or a true pref?), then do you max them out in the cash flow? How much of the cashflow does the investor get? When you sell, how much goes to the investor? The same % of ownership or is this structured differently?

    • @LegacyWealth
      @LegacyWealth  2 роки тому

      Hey DeDee! Check out this video we did on how we split up equity in deals: ua-cam.com/video/23nRkB1Watw/v-deo.html
      Hopefully that answers your question!

  • @samanthapowell5882
    @samanthapowell5882 2 роки тому +4

    You should have paid cash no loans and deff no partners that want that much! You over leveraged and that was you mistake NOT buying a vacation home is the #1 vacation place in the whole World that has Millions of people come every Month!

  • @aminstropicalgardening8371
    @aminstropicalgardening8371 Рік тому +1

    Thanks for sharing

  • @Hosemastenbrook
    @Hosemastenbrook Рік тому +3

    HOA is enough of a red flag to pass on any property for me.

  • @sheilakilby5162
    @sheilakilby5162 2 роки тому +3

    I lost over $100,000 on a cabin in Pigeon Forge (during the great recession). It was terrible!

    • @sheilakilby5162
      @sheilakilby5162 2 роки тому

      @@LegacyWealth no, I am sticking to my market. Asheville NC.

  • @samrei6223
    @samrei6223 2 роки тому +3

    You bring up some valuable points. I think the Disney market is incredibly challenging. You have to spend a lot on game rooms, design, and just daily operating. Then you are competing with people who are incompetent and just drop prices, because they don’t care about making money. You are also competing with the never ending resorts that keep popping up in the area. I think I’ll just stick to my market, which is quiet but has a strong 20% Cash on Cash return.

    • @danieldosanjos8126
      @danieldosanjos8126 2 роки тому

      What market is it?

    • @samrei6223
      @samrei6223 2 роки тому +3

      @@danieldosanjos8126 I’m keeping that on the DL. I don’t need Avery Carl or any other “Guru” coming down there and ruining it.

  • @Auranshereef
    @Auranshereef 2 роки тому +2

    Great content Tim! 🔥

  • @auranshereef4551
    @auranshereef4551 2 роки тому +2

    Great content Tim!

  • @Dr4gonWarrior
    @Dr4gonWarrior Рік тому +1

    Great video thx!

  • @nancybender7922
    @nancybender7922 2 роки тому +4

    Great information Tim. I came upon your video today as I am starting to research the Orlando area to do some short term vacation rentals there. I have a few in the Pigeon Forge area that are doing very well, so am hoping to duplicate that in the Orlando area. Your video is making me re-think that strategy although I do understand that you have to be very unique down there to bring in the money. As a SC resident (and an ardent lover of the HH area), I am curious to find out more about what you are doing with that private island off of HH. Where can I find more information about that? Also, what areas do you feel are the best to invest in out in western NC? That is another area I find interesting. Thanks!

    • @geibelhomes5103
      @geibelhomes5103 2 роки тому +1

      Did you end up buying anything in the Orlando area? I am looking there as well

    • @NareshVideoList
      @NareshVideoList 2 роки тому

      I’m planning to buy rental house around Pigeon Forge. Could you please give some suggestions?

  • @ToddBizCoach
    @ToddBizCoach Рік тому

    When you built that property what made you build where you built? Did you take into consideration HOA fees? Why did you build so big? Did you hire a builder or were you the general contractor with a project manager? Was it stick built or did you use ICFs?

  • @sofiaairbnbja
    @sofiaairbnbja 2 роки тому +1

    Great info. Thanks for sharing..btw new subscriber to your channel

  • @lendaryreviews
    @lendaryreviews Рік тому

    Lucky you! This week the market losses 30% . I guess that better then the 80s with 50%

  • @edwinarmando310
    @edwinarmando310 Рік тому +1

    Love the videos and good explanations

  • @frostedstix5427
    @frostedstix5427 2 роки тому +1

    Hey Tim, I’m currently a 20 year old college student. I’m super motivated to be successful and make a great living doing something I enjoy one day. I really enjoy learning about rental properties and the marketing that goes into it. But I just can’t quite grasp where to start…. I have some money but not a lot but I want to get started and get experience as soon as possible. I would love to hop on a zoom call if you have any time to help a young entrepreneur!! Thank you !

    • @frostedstix5427
      @frostedstix5427 2 роки тому

      I totally understand if a zoom call is not a possibility but I would love to know where I can get started as a young entrepreneur, and also is it worth it to get a college degree or would I be better off beginning my career ! Thanks so much!

    • @LegacyWealth
      @LegacyWealth  2 роки тому

      Hey! I don't really do one-on-one coaching, but you should come out to our next Commercial Empire event! It's a three-day virtual event (so you don't even have to leave home) and my team and I will go over everything you'd need to know to get started in multifamily real estate investing. My Director of Acquisitions is a ninja when it comes to marketing for deals and he leads the "Find It" section of the course. I think that would be right up your alley! Check out CommercialEmpire.com to see when the next event will be.

  • @jla4christ
    @jla4christ 2 роки тому +1

    Good information & nice aesthetics.

  • @lorenaperu
    @lorenaperu 2 роки тому +1

    So who administers those unique places ?
    Very good ideas ! Thank you for all the information!

    • @LegacyWealth
      @LegacyWealth  2 роки тому

      Thanks for watching! We either use in-house property managers or a third-party property management company to take care of that part of it.

  • @Chipsanity2024
    @Chipsanity2024 2 роки тому +1

    My question is why go so big? 6 baths, 9 bedrooms… the overhead seems outrageous.
    Why not go 3/2 bedroom condo with the great resort style amenities and keep your overhead low so when you list for 125ish and rent out 300 of 365 you can profit after costs at about 14-20k a year?
    I understand going big for big rents but when you rent at 250 because of the saturation you take a bath…. thats the hindsight being 20/20 part of your experience and nobody saw a pandemic event hitting.

  • @patrickly8547
    @patrickly8547 Рік тому +1

    Thanks! Awesome tips.

  • @betino705
    @betino705 2 роки тому +2

    How much percent you usually pay a company for running costs , cleaning the places , bookings etc
    About 10%? In your new homes

    • @LegacyWealth
      @LegacyWealth  2 роки тому +1

      Hey, and thank you for commenting! I answer this question in my latest Q&A video here: ua-cam.com/video/3fp-6tpHCpU/v-deo.html

  • @Mr.T.Pierce14
    @Mr.T.Pierce14 2 роки тому +1

    More awesome videos. Thank you.

  • @beezer5623
    @beezer5623 2 роки тому +1

    The competition side is very interesting information thank you for sharing. I have a question I hope you can answer.
    Out of these issues how much did the competition hurt your investment? We are looking in the “Disney” area and it seems that your high interest rate and investor rate really hampered your return.
    We wouldn’t have any investors and I’m sure we will beat that mortgage rate.
    Also should we look to a new resort development? Or buy an existing fully furnished home?

  • @seanhuynh5184
    @seanhuynh5184 2 роки тому +1

    awesome video. thanks for sharing.

  • @stluffy_cat7475
    @stluffy_cat7475 Рік тому +1

    Thank you!!!

  • @michaeljalmeida
    @michaeljalmeida Рік тому

    Great info here. I didn't hear any mention of property management companies on the Orlando properties. Did you manage them yourself?

  • @toddlee5051
    @toddlee5051 2 роки тому +4

    It seems your Short term rental direction is toward larger valued assets- is this by intention, similar to your MF investing strategy?

    • @timbratz
      @timbratz 2 роки тому +2

      Yes. There's more scale, worth my (and my team's) time, and more unique.

    • @clays6218
      @clays6218 2 роки тому +3

      @@timbratz Great video Tim. How did you evaluate supply & demand for the NC property and have confidence a large rental like that would work well? AirDna or other analysis helpful? Was that property originally marketed as seller financing?

    • @timbratz
      @timbratz 2 роки тому +3

      @@clays6218 I spoke to some management companies in the area & got their feedback. I was buying the house one way or another, it was a smoking deal. It was not marketed as seller financing, I developed that conversation early on in my discussions.

    • @clays6218
      @clays6218 2 роки тому +2

      @@timbratz Thanks! Shoutout to your video/content creator, they're doing a great job.

  • @wowitsruss
    @wowitsruss 2 роки тому +2

    I steer away from any coastal line properties due to the higher likelihood of stronger catastrophes. Insurance, cost, and risk push me away overall. I would do RV units for coastal and focus more on villa duplex locations above Texas and West of Tennessee. Younger generations are traveling more for jobs(2-3 years), baby boomer is already retiring and even more next 5 years which many will migrate away from coastlines. I'm forecasting longterm though so I've been focusing on vacant lots especially states for veterans

  • @driven01
    @driven01 2 роки тому

    The townhome with the gameroom garage, I think my daughter rented that last week. :-)

  • @LacreshaWicker-qw5xo
    @LacreshaWicker-qw5xo Місяць тому

    I've been playing my games for like a heck of years and I didn't have like several devices but I have two now that I own and one of them is not letting me get on the internet and the other this when I'm on right now I cannot do anything but the phone number appears on my phone I can call it but if you call me and my phone probably ring one time the best thing for us to just anybody that's trying to get my attention is to come and knock on my door

  • @superkacosta
    @superkacosta 2 роки тому

    Thanks for sharing. Question. How did you get your propeties to be in the 1% listing of all orlando, Some task. Curios to know how. Thanks againg.

  • @nikilloster
    @nikilloster 2 роки тому

    What's the best way to check the market offer vs market demand of a specific area?

  • @ToddBizCoach
    @ToddBizCoach Рік тому

    Your business model was flawed for STVRs. 1. There is a tipping point whereby buying or building bigger is one of diminishing returns. A 9 bedroom does not command a higher ADR than a 6 bedroom because there is less demand for 9 bedrooms.2. Being a slave to rising HOA rates is never a good idea 3. If you have no way of marketing your property via direct reservations you have no competitive advantage over other STVR owners; price wise or occupancy level. Relying on platforms like Airbnb or Vrbo to market your properties is no way to run a business. 4. There are much cheaper ways to fund a STVR business than paying the rates you did or syndicating to cover capital expenditures.

  • @johnz.2907
    @johnz.2907 2 роки тому

    Alot of hidden x factor costs, that’s the difference between a new investor who falls in love with property and the ideals of fantasy and experienced ones who realize anything can and will cost you.

  • @anye0001
    @anye0001 2 роки тому

    Great video. 👌🏼

  • @geneliasmith1070
    @geneliasmith1070 2 роки тому +1

    Valuable information! Thanks for sharing! But why would people on vacation buy the rental properties? They will prefer to rent them instead and many travel guide companies are doing great job in providing vacation rentals in Orlando, Florida at discounted rates, one of them is Go Blue Travel

  • @paulstrzykalski2596
    @paulstrzykalski2596 2 роки тому +1

    Wonder what the value of the property is now?

    • @LegacyWealth
      @LegacyWealth  2 роки тому +2

      According to Zillow, one is valued around $800,000 😱

  • @markz306
    @markz306 2 роки тому +1

    how do you present a seller financing deal to a. seller?

    • @LegacyWealth
      @LegacyWealth  Рік тому

      Hey Mark! You should check out the videos I just did on seller financing! Here's a link to the first one: ua-cam.com/video/-UNEny6cBII/v-deo.html

  • @vanessamark7889
    @vanessamark7889 2 роки тому

    Hello! Could you post the link to your castle airbnb or message it to me please? I would love to book it someday!

  • @iart2838
    @iart2838 2 роки тому +2

    you're talking big money game here not for an avg person

    • @LegacyWealth
      @LegacyWealth  2 роки тому

      I'm as average as anybody. If you want to learn how to do what I do, check out Commercial Empire (at commercialempire.com). My team and I will teach you how to find, FUND, and operate apartment buildings to build wealth. You can also check out this video I did with my buddy Juan Carlos (who makes a ton of money on Airbnb) talking about how to structure deals using none of your own money: ua-cam.com/video/IXK3ezjHm1M/v-deo.html

  • @johnnysocko4302
    @johnnysocko4302 Рік тому

    These seem like great value places to rent for a (Disney) vacation. Maybe also worth it to live if this is your ideal lifestyle.

  • @LacreshaWicker-qw5xo
    @LacreshaWicker-qw5xo Місяць тому

    96

  • @enjoythedreamlife5658
    @enjoythedreamlife5658 2 роки тому

    So you finally figured that you can't make money with AIRBNB's. Floriday vacational rentals have been around for a century. UNless you do the rentals and work yourself, there is no money to be made. Plus Florida Vacation Rental don't really go up in value