Investing in Sunshine: Traditional or Short-Term Rentals?

In March 2025, Theodore McMantis needed to make a quick decision regarding his next real estate investment. Over the past 15 years, McMantis had built a small real estate investment portfolio consisting of 13 single-family homes located throughout Florida. Having just sold his successful orthopedic medical practice, McMantis decided to put another $1 million into his rental portfolio. Two of his broker contacts had identified attractive candidates for his consideration. One was in Windermere, a 12-minute car ride to Disney's Magic Kingdom. The other was in Miami Beach and took the same 12 minutes to reach the city's famed Boardwalk. At first glance, he liked the prospects of owning either property because their locations were always in high demand. However, given that their desirable locations were sought after by tourists, McMantis wondered whether his next investment should be a short-term rental (STR) rather than a traditional rental, like the rest of his portfolio.