The deal numbers
Figures as recorded in the client deal tracker. The return basis and reporting period require confirmation.
- Purchase price$700,000
- Down payment$105,000
- Closing costs$10,500
- Design and furnishing$120,500
- Total entry cost$236,000
- Recorded annual cash flow$30,555
- Recorded cash-on-cash12.18%
The tax position
- Purchase price$700,000
- Typical cost seg reclassification25% of price
- Illustrative year-one deduction$175,000
- Illustrative tax reduction at 40%$70,000
An illustration, not this client's return: 25% of price reclassified at a 40% marginal rate, the same assumptions as our calculator. Your number depends on your study, your rate, and meeting the seven day and material participation tests. We are not a CPA firm.
The full story
Davenport sits on the western edge of the Orlando vacation home belt, along the US-27 corridor that runs south from I-4. It is close enough to Disney to sell the proximity, and priced below the communities that sit directly against the park boundary.
Naveen bought an eight-bedroom at $700,000. As with the rest of this corridor, the economics are driven by bedroom count rather than square footage or finish level, because the guest is booking on how many people the house sleeps and whether it has a private pool.
Two amenities decide the pricing tier in this market. A private pool with heating is effectively mandatory, since Central Florida evenings in January and February are cool enough that an unheated pool is unusable exactly when snowbird demand peaks. A game room converted from the garage is the second, and it is the single most common upgrade that moves a Davenport property from the bottom of the pricing pack into the middle.
Underwriting the Orlando corridor means underwriting the fee structure honestly. Most of these communities carry homeowner association dues that cover the shared amenity complex, and those dues are not small. A proforma that models revenue accurately but treats HOA fees as a rounding error will overstate cash flow by a meaningful margin.
Questions about this deal
What did Naveen's Davenport property cost?
An eight-bedroom resort home purchased for $700,000 in Davenport, Florida.
Which amenities matter most in the Orlando corridor?
A heated private pool and a converted game room. Central Florida winter evenings are cool enough that an unheated pool goes unused during peak snowbird season, and a game room is the most common upgrade that lifts a property out of the bottom pricing tier.
Do HOA fees matter in Orlando resort communities?
Substantially. Most of these communities charge dues covering the shared amenity complex, and a proforma that understates them will overstate cash flow.
Related
- Short-term rental market analysis for Davenport
- The per-bedroom math near Disney
- Florida short-term rental regulations
- Beach property investing guide
- Jason & Marissa, 8BR resort home in Champions Gate
- Harshavardhan & Meghna, Resort home in Orlando corridor
- All client case studies
- The full deal tracker
- How the acquisition process works
- Financing a purchase like this
- The design and furnishing playbook
- The tax strategy behind these purchases