Blog
Orlando STR vs LTR DSCR 2026: Kissimmee Vacation Rental Math
By Jason Taken · Principal, Jaken Finance Group
Orlando STR vs LTR DSCR 2026 — Kissimmee vacation rental vs long-term hold economics, hard money acquisition, and permanent refi comparison.
Central Florida investors face a recurring fork: Kissimmee short-term rental (STR) targeting $4,000–$7,000/mo gross on vacation-home stock, or long-term rental (LTR) targeting $1,850–$2,400/mo with cleaner DSCR refi on DSCR loans Florida. Same hard money acquisition tool — different exit math, regulation, and insurance line.
This guide models STR vs LTR on identical Kissimmee-adjacent basis using hard money loans Kissimmee Davenport Orlando STR parameters for acquisition and permanent hold comparison.
Why Kissimmee is the STR vs LTR laboratory
Osceola County (Kissimmee, Davenport, Poinciana) concentrates:
- Disney corridor demand — 10–25 minute drive to parks
- 4–6 bedroom pool homes built for STR floor plans
- County STR registration — not Miami Beach chaos, but regulated
- LTR alternative — workforce housing for hospitality employees
Investors buy the same $320K–$420K stock and choose operating model at close — hard money funds either path in 7–14 days.
| Factor | STR (Kissimmee pool home) | LTR (same submarket) |
|---|---|---|
| Gross income | $4,500–$6,500/mo seasonal | $2,100–$2,500/mo |
| Occupancy | 65%–75% annualized | 95%+ lease |
| Furnishing capex | $25K–$45K | Minimal |
| Insurance | STR rider + higher liability | Standard landlord |
| Management | 20%–25% of gross | 8%–10% |
| DSCR lender treatment | Variable — some use STR income | Standard rent roll |
| Regulation | Osceola STR permit required | Standard lease |
Acquisition — hard money structure (both models)
Typical Kissimmee 4/3 pool home:
| Line | Amount |
|---|---|
| Purchase (needs cosmetic + pool refresh) | $355,000 |
| Rehab (STR-ready vs LTR-ready) | $55K STR / $38K LTR |
| Furnishing (STR only) | $32,000 |
| Hard money LTC | 87% on qualified file |
| IO rate | 10.75% |
| Close timeline | 10 business days |
Product hub: hard money loans Kissimmee Davenport Orlando STR · hard money lenders Orlando.
STR pro forma — Kissimmee 4/3 pool home
Conservative STR underwriting (not peak-season fantasy):
| Income / expense | Monthly |
|---|---|
| Gross booking revenue (72% occ, $285 ADR) | $6,156 |
| Platform + cleaning | ($1,230) |
| STR management (22%) | ($1,354) |
| Insurance (STR landlord + pool) | ($385) |
| Property tax | ($420) |
| Utilities / pool / internet | ($680) |
| Maintenance reserve | ($310) |
| NOI | ~$1,777/mo |
| STR hold scenario | Value |
|---|---|
| All-in basis | $442,000 |
| Appraised (income approach varies) | $465,000–$510,000 |
| DSCR refi eligibility | Lender-specific — many require 12–24 mo STR history |
| Effective DSCR if 75% LTV @ 7.25% | 0.95–1.15 depending on income treatment |
STR wins absolute NOI dollars when occupied — DSCR refi is harder because lenders discount short-term income or require seasoning; review what it takes to qualify before you count on a permanent exit.
LTR pro forma — same house, long-term lease
| Income / expense | Monthly |
|---|---|
| Gross rent (4/3 to hospitality family) | $2,350 |
| Vacancy (5%) | ($118) |
| Insurance (standard landlord) | ($265) |
| Property tax | ($420) |
| Maintenance (10%) | ($235) |
| Management (9%) | ($212) |
| NOI | ~$1,100/mo |
| LTR hold scenario | Value |
|---|---|
| All-in basis | $393,000 (no furnishing) |
| Appraised | $410,000 |
| DSCR refi 75% LTV @ 7.0% | ~1.18 |
| Cash-out at refi | Moderate |
LTR wins refi reliability — lower gross, stronger ratio, faster path to DSCR loans Florida permanent.
Side-by-side — 24-month operator view
| Metric | STR path | LTR path |
|---|---|---|
| All-in capital | $442,000 | $393,000 |
| Month 1–6 NOI (ramp) | $1,200 avg | $1,100 |
| Month 7–24 NOI | $1,900 avg | $1,100 |
| 24-mo cumulative NOI | ~$38,400 | ~$26,400 |
| Refi at month 18 | Uncertain without history | Likely at 1.15+ |
| Operator time | High | Low |
| Regulatory risk | STR rule changes | Standard |
STR generates ~$12K more NOI over 24 months in this model — but LTR refi may fund the next acquisition 6 months sooner.
When to choose STR
Choose Kissimmee STR when:
- You have STR management in place (not self-managing from Chicago)
- You can carry 12–24 months without DSCR refi
- Furnishing and pool are scoped in hard money rehab draws
- You target cash flow, not portfolio scale via refi
- Osceola STR permit path is confirmed pre-offer
See hard money Kissimmee STR hub for program detail.
When to choose LTR
Choose LTR when:
- DSCR refi is the exit within 12 months
- You are building a multi-door portfolio — refi velocity matters
- Insurance and management simplicity outweigh STR gross
- Tenant pool is hospitality workforce — stable 12-month leases
Permanent: DSCR loans Florida · inland insurance advantage in Florida DSCR insurance guide.
Hybrid — STR to LTR conversion
Some operators run STR for 12 months (establish income history), then convert to LTR before DSCR refi:
- Acquire with hard money Orlando/Kissimmee
- Operate STR months 1–12 — document net income
- Convert to $2,400/mo LTR at month 12 — new lease for appraiser
- Refi into DSCR using LTR lease (cleaner) with STR history as backup
Conversion cost: $8K–$15K (furnishing storage, re-marketing) — model before choosing hybrid.
Hard money parameters (2026)
Kissimmee STR and LTR acquisitions share bridge terms:
- 9.5%–12.25% interest-only
- 85%–90% LTC including rehab
- STR files — furnishing may be separate equity or included in scope with documentation
- 7–14 day close
Also: best hard money lenders Orlando 2026 · Orlando neighborhoods flipping 2026.
Red flags
- STR gross from peak-week Airbnb comp only
- No Osceola STR permit budget ($500–$1,500 + inspection)
- Pool equipment deferred — STR bookings collapse
- HOA prohibition on STR — common in newer Davenport builds
- DSCR refi assumed at month 6 without STR seasoning plan
Bottom line
Kissimmee STR beats LTR on gross NOI when managed professionally — LTR beats STR on DSCR refi velocity and operational simplicity. Match the model to your exit: cash-flow operators STR; portfolio scalers LTR; hybrids need a documented conversion timeline before hard money close.
File gaps that push closes past 14 days
Investor bridge files on orlando str vs ltr dscr florida 2026 queue behind complete packages when:
- Entity name on title does not match LLC operating agreement
- Scope omits permit fees on structural or MEP work
- Insurance quote uses owner-occupied assumptions
- Comps cross submarket boundaries (adjacent city premiums)
Submit purchase contract, scope, comps, entity, and liquidity in one pass — (833) 264-7776.
Orlando STR vs LTR DSCR 2026: Kissimmee Vacation Rental Math — FAQ recap for investors (2026)
- LTR alternative — workforce housing for hospitality employees.
Orlando STR vs LTR DSCR 2026: Kissimmee Vacation Rental Math — next step (2026)
Permanent 5.75%–10.5% DSCR sizes on executed lease rent with investor tax and insurance in NOI — not seller bills or STR pro forma. florida deals need local sold comps — not statewide templates.
Submit scenario · Pre-qualify · (833) 264-7776.
If licensing pressure pushes your strategy past 30-day stays, the mid-term rental DSCR loans guide covers how lenders credit furnished medium-stay income.