STEP 1: Choose. We must look at how you intend to use your home. If like most families, your personal usage is limited to less than 2 months, then it is most important to purchase a short-term rental home that meets the specific demands of the majority of vacation renters, so that you can derive the maximum income. Your home must be close to Disney World (within 15 minutes), have a pool, be furnished correctly, and be at least a new 3-bedroom/2 bath or larger. What size home will meet your needs? Certainly, affordability can determine our recommendations.
STEP 2: Pre-qualify. You will need to be pre-qualified for a mortgage so that we will know the parameters (if any) of the financial commitment available (to pre-qualify at no charge click on the following link for quick loan pre-qualification). A pre-qualification is only good for 30 days; so try to time your application to still be in effect when you make your trip to the Disney World area. Also consider the fact that the more money that you plan to put down as a deposit, the better off you are when it comes to lessening your monthly obligation. With most management companies, a 20% down payment will result in very little, or no monthly expenses based on a 30 year fixed mortgage. The down payment amount will vary depending on the type of financing you choose.
STEP 3: Management. You will want to know more about the management/rental company that you will contract. What are their charges and policies? Contact us for management company recommendations and contact information. It is not a bad idea to rent a home from the management company that you are considering doing business with, when you visit, in order to quantify the experience. Let us know the dates you would like to stay and we will secure reduced rates.
STEP 4: Purchase. Naturally, we suggest purchasing your home as soon as possible. It is currently a buyers market for income producing vacation homes near Disney because there are an excess of homes for the number of buyers. When you have a buyers market, this is the best time for buyers to purchase. Interest rates are also a positive ingredient to excellent timing. Consider that if you contract a new home to be built and deposit a small percentage with a development, you may not actually need to pay any more money until closing, which could be as long as up to 12 months or longer from now. If that timing works, then don’t wait for the prices and interest rates to go up. Plan your trip now. Let us know how we can help.