When we were in Florida last fall, we looked into the economics of owning a vacation rental house .... turns out it wasn't in the cards for a number of reasons. With the price of the houses, you need about 85% occupancy just to break even. I've since found out that the hotel industry uses a target of 60%, and this seems to be a more reasonable target .... thus the only way to achieve this is for the price of the houses to come down.
With that in mind I've been watching the Kissimmee market rather closely .... and let me tell ya, it's REALLY bad. Absolutely nothing is moving. Check out this sales chart 2000-2008:
Sadly, prices really haven't come down as much as the above chart would have you believe.... YET.
Out of about 10 cities along the I 81/95 route down I couldn't find one exception to this type of graph. "Flip that house" is set to become "Ditch that house". Trulia is the place to go to get the ugly truth.
Of interest to those of us in Smiths Falls and The 'gue is the Spruce Ridge Fly-in community in Daytona. We're no Daytona ... but the prices of lots and houses in this place are astronomical - lots are $350k and fixer-upper houses go for $500k... and they go from there to $2Mill plus.
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