In the exclusive webinar, “Unlock the Secrets to U.S. Airbnb & Short-Term Rentals,” Robert Chadwick, CEO of America Mortgages, and Rob Mehta, U.S. Real Estate Investment Expert, shared expert insights into the booming short-term rental (STR) sector, with a focus on Florida’s most promising investment opportunities.
For those who missed it, the recording is available here.
During the session, RC and RM addressed key questions, covering market trends, property performance comparisons, and tailored financing solutions designed specifically for foreign nationals and U.S. expats investing from abroad.
Remarks have been edited for clarity and brevity.
Given Florida’s hurricane seasons and insurance challenges, how do STR investors protect their investments and stay profitable during slow periods?
RM: Hurricanes and the weather are definitely an ongoing concern. Your risk is higher on the coasts, and that reflects in higher insurance costs, which can cut into profitability. However, demand for short-term rentals in coastal markets is also very strong, which balances things out. Investors should be aware that during slower seasons, they may need to adjust pricing to remain competitive. Many owners also choose to use their own properties during off-seasons as a way to maximize value while waiting for demand to rise again.
What are your thoughts on the competing markets within Florida – for example, how does investing in Orlando’s tourist corridor compare to beachfront properties in Tampa or Miami in terms of ROI and occupancy rates?
RM: It mostly comes down to volatility. Coastal markets tend to be more seasonal, with stronger swings in occupancy and pricing, whereas Central Florida—particularly Orlando—is a much more stable market year-round. Orlando is the largest family travel market in the state, and demand remains fairly consistent because of theme parks like Disney and Universal. That said, ROI often ends up being higher in markets that experience greater volatility, but of course, that also means a higher level of risk.
What amenities or property upgrades tend to deliver the best return on investment for Florida STRs?
RM: For villa-style properties, having a private pool is essential. It’s one of the top features guests look for, and homes with pools consistently outperform those without. When it comes to condos, amenities like a community pool, playgrounds, walking paths, and access to a fitness center or clubhouse are key. Another major factor is proximity to restaurants, shopping, and entertainment. That plays directly into guest satisfaction, which then impacts reviews—and ultimately, bookings.
What types of properties—condos, single-family homes—tend to perform best as STRs?
RM: It really depends on location more than property type. Condos tend to have higher HOA fees, which can eat into profitability, while single-family homes generally have fewer ongoing costs. That said, condos often come with built-in amenities that attract guests, while single-family homes provide more space and privacy, which can be a big advantage in certain markets.
Did I hear that the first 10 years are interest-only payments?
RC: Yes, we offer a 10-year interest-only option. For the first 10 years, you’ll only pay interest. After that, the loan converts to principal and interest payments for the remaining 20 years—at the same fixed rate.
For the 10-year interest-only – is that optional or mandatory?
RC: It’s optional. You can choose between the 10-year interest-only option or a fully amortizing 30-year fixed-rate loan, depending on your preference.
How much is the AM application fee?
RC: There’s no application fee. You can submit your documents securely, and we typically issue pre-approvals within 24 to 72 hours.
I’m not a U.S. citizen, so how long would it take for me to get mortgage approval with America Mortgages?
RC: The process is quite fast. Once your documents are submitted, pre-approval can be issued in 24 to 72 hours. Full loan approval and closing usually take around 30 to 45 days. No U.S. credit history is required.
Hi Robert, can you give a breakdown of your service fees, with rough estimates?
RC: Our origination fee is typically 2% of the loan amount, payable only upon closing. Standard closing costs—like title, escrow, and insurance—are similar to what U.S. citizens pay and vary by state. Everything is transparent, and all fees are disclosed upfront. Some of these costs may be tax-deductible, so we always recommend checking with a tax advisor.
Which loan program is the most popular for investors keen on short-term rentals?
RC: The Short-Term Rental (STR) Loan Program is the most popular. It qualifies you based on the property’s rental income, not your personal income. Sometimes, the Loan-to-Value (LTV) is a little lower, around 65%, compared to 75% for long-term rental loans. Some clients also qualify based on long-term rental income and later operate the property as a short-term rental.
Which states do you handle property management in?
RM: We don’t directly manage properties, but we work closely with property managers across the U.S., especially in Florida, and can connect you with trusted partners. Full-service STR management typically costs 15-25% of rental income, while booking-only services are around 10-15%.
Can you share examples of effective marketing strategies for Florida STRs on platforms like Airbnb, especially during slower seasons?
RM: Transparent pricing is key—avoid adding hidden fees like cleaning separately. Bundle it into your nightly rate to prevent deterring guests. Listings should be accurate, especially regarding access details and amenities, as guest complaints can hurt your reviews. Work with managers who list your property across multiple platforms like Airbnb, Vrbo, and Booking.com. Using dynamic pricing tools is crucial to stay competitive, and setting a minimum rate—like $150 per night—can protect your margins while still allowing for flexibility in the off-season.
What is the current rate for the 30-year fixed?
RC: Rates for U.S. citizens are currently floating just below 7%, typically in the high 6% range up to 7%. For non-U.S. citizens, rates are generally about 0.5% to 1% higher than U.S. citizen rates.
Would you recommend buying a condo in Orlando for STR, given the new law on condos and higher HOA fees?
RM: Condos in Orlando can still be a good investment, but you need to do your homework. The new condo laws, introduced after the Surfside collapse, mostly impact older high-rise buildings. They require more structural inspections and reserve funds, which can increase HOA fees. Also, check that short-term rentals are actually allowed, as many condos prohibit them. While condos can generate good income, single-family homes and townhouses often appreciate better and may have lower fees.
