Updated for 2016
When thinking about investing in a Kissimmee vacation rental close to Disney World one of the most important factors to consider, if you want to offset your expenses, is which neighborhoods (and floor plans) generate the most income. As a vacation rental real estate specialist my recommendation to you is to work backwards. Don’t be like so many vacation rental investors that just jump into this process and throw spaghetti against the wall. Start backwards to achieve the income goals you desire, even if maybe it turns out that the home you originally wanted may not be the best choice financially.
The first step backward to move forward is to compile a list of all the Kissimmee vacation rental neighborhoods in your price range that earn top dollar on bookings and have a stable booking history and start focusing on those communities (I don’t think you’ll be disappointed with your options). There are really two main ways to obtain a list like this. The first is the easiest and that would be to hook up with a qualified, vacation rental Realtor who works this market (cough cough). The second would be to shop Kissimmee vacation rental management companies and ask them for booking records but management companies are not so keen on divulging their property information to potential owners as this information often contradicts what they quote you in terms of rates.
Why did I pick these communities below? I picked them because they are some of the most popular Kissimmee vacation rental resorts, each community is also very comparable in terms of size and the type of home so we are comparing oranges to oranges not apples to oranges. The floor plans are all very similar as well. The main difference is location.
Here is a look at the five most popular Kissimmee vacation rental neighborhoods and how their booking revenue compares. All the information is based on a 6 bedroom home and the average nightly rates are taken from VRBO. I took the average rate of 10 different 6 bedroom homes in the community and used the average of those to calculate the average nightly rate. For the average purchase price, this is based on the MLS data of the sold 6 bedroom homes in the past 180 days.
In analyzing this research, it would appear that each Kissimmee vacation rental community is VERY similar in rental income but there is a difference in purchase prices. No doubt because of the locations of each. If you want to be as close as you possibly can to Disney than Windsor Hills is where you’ll want to invest. If you are in love with the Formosa Gardens area, like many people are, than Emerald Island is a great choice. Bellavida and Terra Verde are the furthest from Disney out of all of these yet they’re still pulling in very similar rates.
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