Did you know you can own a hotel in Orlando?
In fact, what we will present in this article is a simpler business than actually having a hotel. However, with similar or greater profitability and still without the management work and all the bureaucracy that involves a hotel business.
In fact, many investors, clients of our real estate agency, have already noticed this opportunity and have embarked on this highly profitable business.
And if you are thinking about buying a property in Orlando, with the aim of investing and earning income in dollars with rent, you cannot fail to read this article and take advantage of this super investment tip.
First step: Understand the concept..
We have already discussed in this blog the concept of vacation homes in Orlando, better known as Vacation Homes.
They are vacation homes located close to the main attractions of Orlando. They belong to super complete condominiums, which offer their guests incredible infrastructure and amenities, such as resort-style pools, spa, club-houses, gym, sports courts, restaurants, playground, golf courses and much more.
The owner can use the house on vacation (or whenever he wants) and rent the rest of the year. In this way, he fulfills his dream of having a second home in Florida and still earns dollar income with rent, realizing high returns.
Buying a Vacation Home in Orlando is now one of the most profitable real estate investments in the world. There are more than 70 million people visiting the city every year, an impressive flow of tourists and professionals looking for accommodation. It’s not hard to understand why the return on investment for an Orlando Vacation Home is so high.
And the trend is for the demand for accommodation in Vacation Homes to increase. The flow of tourists to Orlando increases every year and the advantages of staying in a Vacation Home outweigh those of staying in a hotel.
Good! Now that you already know the concept of a Vacation Home, we can then move on to the theme of this article: Having your own “hotel” in Orlando.
Building your own “hotel” in Orlando
I made a point of putting the word “hotel” in quotation marks, precisely to make it clear that it is not really a hotel, with all the bureaucracy, complexity in the management and administration of people, necessary licenses and even the huge investment that a hotel requires.
It is actually much simpler!
What we will show in this article is how you can have several “rooms” distributed throughout the city in Orlando and profit from lodging, just like in a hotel. And with the advantage of not having the work to manage (administer) anything. How?
Several clients here at Real Estate noticed this opportunity when they bought their first vacation home in Orlando.
Upon realizing the high return on rent, they decided to buy a second home and make it available exclusively for rent, as the first home acquired was also used for their own leisure.
And the most interesting thing is that the income obtained from the first home helped to buy the second Vacation Home in Orlando, since everything is done in a leveraged way and through financing with banks in Florida.
As interest rates in the US are low and loan terms are long, the rental income is matched by the financing portion, in true real estate leverage. Understand in the next topic:
The Secret of Real Estate Leverage in Orlando
The secret of investing in Orlando is to use the money from the banks in Florida to buy the house and, with the rental income, pay off the loan.
The buyer only needs to disburse the down payment, which is around 30% of the value of the property for foreigners and less around 20% for US citizens. The other 70% – 80% enter the business cycle, where the owner already benefits from rental income.
Understand everything about real estate leverage in Orlando in this article
Increasing the number of “rooms” in Orlando
Obviously, the return on the second home acquired is even greater, since it is destined 100% for the rental business.
It didn’t take long for these clients, now with considerably higher incomes, to decide to buy a third home.
There is a specific case here in real estate of a client who is already in his seventh house, the business is so lucrative.
IMPORTANT DETAIL: The seventh home purchased by this client has 14 bedrooms (understand why larger homes bring higher returns in Orlando in this article).
Adding up all the rooms in all the houses in this specific example, the result is that this investor has more than 40 rooms distributed throughout Orlando. A true hotel!
And he doesn’t need to take care of anything! There is virtually no work in management! Find out why in the next topic.
Why is there is no admin effort?
When a buyer, especially a foreigner, buys a Vacation Home in Orlando, we always recommend hiring the services of a Property Manager.
Property Managers in Orlando are used to working with this vacation rental business. In this way, they carry out all the work for the owner, from publicizing and attracting customers, to maintaining and preparing the property for the next guest. Even the collection of values is done by the administrator and transferred to the owner.
The owner does not even have contact with the tenants. The owner just needs to designate a bank account to receive the amounts collected.
Understand better how the total rental management service works in this article
Conclusion: You have the income of a hotel without the management work
This is the secret of great Orlando investors:
1 – They buy their first house financed with Florida banks;
2 – They pay off the loan installments with their own rent, with the surplus they buy a second home;
3 – The second house brings an even greater return than the first, since it is exclusively dedicated to the business. With the higher income, they buy a third house;
4 – Already in the third house acquired, the investor has between 9 and 15 rooms approximately distributed throughout Orlando, a true “mini-hotel” that is characterized as an extremely lucrative business.
5 – In addition to the very high income in dollars with accommodation, the investor sees the appreciation of his assets every year. Homes in Orlando appreciate between 8 and 10% a year. In 2021 the average price of real estate in Orlando appreciated more than 20%.
6 – Valuation of assets also takes place in a leveraged manner, as the owner disburses only the down payment on the financing (about 30% of the value of the property), and the property appreciates as a whole.
About AMG International Realty
AMG International Realty is a global real estate company specialized in Florida and focused on the Brazilian public. If you want to know more details about how the Vacation Homes business and real estate leverage in Orlando works, get in touch right now and chat with me via WhatsApp: +1 305 318 6968 (Heloisa Arazi).