Is Florida Orlando a good place to start house hacking?

Question

Hello BP community,

I am excited to share that my spouse has secured a job in Orlando, FL, and we are considering obtaining a conventional loan for a 2/2 single-family home or condo instead of renting, with the intention of house hacking. The job is temporary for 12 months, with the possibility of an extension, making it an ideal opportunity to get into a residential property, live in it, and house hack while working. My spouse starts her job in April 2024 and I would be joining her soon after, we are both looking forward to this new chapter.

However, I have concerns about the current homeowner's situation in Florida. I have heard unsettling stories about home insurance costs doubling or even tripling for single and small multifamily houses in certain parts of Florida. While I have yet to speak with local agents, I have noticed a significant increase in the housing supply in Orlando and its surrounding areas on public MLS. There are numerous units for sale within the same apartment and condominium communities, as well as motel/hotel complexes. This trend seems to indicate something more than just the presence of hurricane hazards.

Since we are currently in Louisiana and have not had the opportunity to explore Orlando in person, I'm turning to the BP forum for your insights.

Any advice would be greatly appreciated. Thank you all.

Shawn McCormick · Answer

Hi @Vladislav Bobkov You are correct the inventory is up across the board here in Orlando and the two biggest segments are condos and townhomes specifically. Condo inventory is up 42% and townhome is 24% (source ORRA .org) This isn't just factor of insurance, although that is a looming issue that I feel is going to have a rippling effect here in Florida.

Condos are always going to have issues due to high HOA fees and the mismanagement of those funds. I can't tell you how many complexes are not solvent or at the threshold of maximum allowable non occupied owners. The relatively low cost of entry is attractive to investors, but many don't take care of them or run their businesses well and often wind up walking away. Condo prices are actually appreciating faster than single family right now, but I expect that will flip this spring.

I would encourage you to get an insurance agent that can quickly underwrite properties and a lender that can find out if the complex is warrantable or non warrantable before you make offers or at least during your inpsection period.

IMO, if you are able to get into a single family, you will be much better off, but again, watch out for insurance issues (age of roof, water heater, type of plumbing, type of wiring, if its in a flood zone

Happy to talk through this if you like.

Best of Luck!

Is Florida Orlando a good place to start house hacking?

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