Purchasing a vacation home has become much more common in recent years, with vacation rentals outside of the typical hotel becoming more prevalent thanks to resources like Airbnb and VRBO – great news for anyone looking for an additional revenue source that’s easily attainable if you put in some work. Though purchasing vacation homes has become more popular, that doesn’t mean each purchase ends up turning the profits owners expected, and one of the biggest reasons for that is location.
Location is and always will be the most important aspect of a home purchase, whether that home is where you spend you plan to live or a place you intend to rent out. Thankfully for vacation home seekers, a new list of the USA’s best places to buy a vacation rental by Lodgify was recently released. Among the top two: Kissimmee, Florida, behind Gatlinburg, TN (which could be less attainable due to the median home price). Let’s dive into what contributed to Kissimmee, Florida earning the title “2nd best place to buy a vacation rental.”
Profitability
Though there are several factors that make Kissimmee, Florida one of the top spots to purchase a vacation rental property, perhaps the most important to real estate investors like you is its CAP rate, which is 6.9%. For anyone unfamiliar, CAP rates are calculated with a simple formula that identifies the profitability metric of a location. To identify a market’s CAP rate, you divide the net operating income (NOI) by the current market value (CMV), which is how Kissimmee earned its strong 6.9%.
Local Attractions
Of course, a big aspect of profitability relates to why vacation-goers would want to visit the area, and when it comes to Kissimmee, Florida, the list is plentiful. Buying a vacation rental near Disney World in Orlando, Florida is hard to beat in and of itself, but Kissimmee has more to offer than just proximity to Disney. Attractions like SeaWorld, Universal Orlando, and Legoland are nearby, which are common tourist attractions. Outside of the more well-known activities, Kissimmee is also near the Orlando Tree Trek Adventure Park, Dinosaur World, Bob’s Balloon Rides, Swamp Tours, Paddling Center at Shingle Creek, and much more!
Kissimmee is an amazing place for families, couples, and overseas travelers to visit thanks to all there is to do, all year round. The Orlando area draws over 70 million visitors due to the unmatched attractions and gorgeous sunshine. Those 70 million visitors are a massive part of what makes Kissimmee such a fantastic place to purchase a rental property – you don’t want to miss out on the potential!
I’m Sold, What’s Next?
Now that we’ve established how amazing of a place Kissimmee, Florida is for real estate investors to purchase a vacation rental, let’s discuss how to choose the right home in Kissimmee, particularly if you are unfamiliar with the area beyond what’s already been shared.
Kissimmee and Davenport are two of the top areas to look at if you are seeking a vacation rental property near Orlando as they have already proven high occupancy rates, which equals high rates of return for investors. Working with a realtor is your next step to find the perfect property for your needs, giving you expert knowledge in the area. As you are viewing properties with your realtor, be sure to also leverage online resources that give you insight into pricing your property. With those resources, you can compare which homes offer the best rates per night, maximizing your profits, but you can also see how to creatively adjust your rates throughout the year to stay competitive (and profitable) no matter the season.
Your Trusted Partner – Mike Chen (Your Vacation Home Specialist in the Orlando / Disney Area )
Finding the right realtor is always an intimidating process, but that is certainly amplified when you are both looking for real estate outside of your hometown and seeking to purchase a home specifically as a vacation rental. That is precisely where my expertise is so beneficial to my clients. Not only am I well-versed in the Kissimmee, Florida area, but I am a vacation homeowner and operator myself. I understand what areas have the highest occupancy and why, trends that are important for investors, how to manage booking, and much more. I’m more than just a real estate agent, I’m passionate about being a resource to others looking to step into the amazing business that is vacation rentals. Allow me to help you find your perfect property, one that attracts guests year-round – reach out today!
