Orlando Multi-Family Homes

Orlando Multi-Family Homes

Kissimmee, FL 路 Member since 2018 路 3 posts 路 0 votes

I currently live in Orlando, FL and one thing that comes to mind is the lack of individual multi-family homes around the 3 unit range in Central Florida. 

A little background on myself. I was born and raised in Waterbury, CT and for anyone who knows anything about the lower income areas in CT, this is one of the worst all things considered. However, I see that a lot of the properties in that area are at least 3 unit, 3 story, multi-family properties that are affordable with the potential for rent per unit, and/or living in one of the units and renting the others. In general, I think this is a good idea as purchasing one property with the advantage of renting out 3 units seems to make more sense than buying a single family home in a cookie-cutter community and having one rent.

Now I know there are Pros and Cons for having a multi-family home but lets say with all that considered, I am still curious as to why there aren't many properties like that in Central Florida or even Tampa for that matter. 

I would like to have an open discussion about this ranging from different reasons/theories. But first question I have is, is there anything that prohibits the building of these properties in Central Florida? Building codes, laws, etc.. Whatever could prevent this, let me know here. If there isn't any legal hurdles, than how possible do you believe it is to potentially build these type of homes.

Side Note: As I said I am from Waterbury, CT, so the image of 3 family homes I have in my head are from this area. The typical New England style 3 story homes. With each floor having its own home complete with bedrooms, bathrooms, kitchen etc.. and a shared yard/driveway. Look up some listings online to get an idea of the type of homes I am talking about.

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Rental Property Investor 路 Dallas, TX 路 Member since 2017 路 1k+ posts 路 1k+ votes
8y

@Juan Espinal 3-4 unit MFs are very common in the NE and certain parts of the country. They are not as popular in the South. My understanding is that a lot of this type of development boils down to the urban planning departments in every city. Land is not at a premium in the south. Instead of building up, people build out. Structurally speaking, in hotter climates you want more surface area to allow the heat dispersion. The opposite is the case in colder climates. 

Would be interested in knowing other reasons. 

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  • Investor 路 Fairfield, CT 路 Member since 2017 路 43 posts 路 19 votes
    8y

    Hi Juan,

    You raise a good question, i will continue to monitor this thread to see what comes up.

    Where in Waterbury did you live? I own 2 single families there and I'm in the process of trying to pick up a few multi families there also. 

  • Rental Property Investor 路 Dallas, TX 路 Member since 2017 路 1k+ posts 路 1k+ votes
    8y

    @Juan Espinal 3-4 unit MFs are very common in the NE and certain parts of the country. They are not as popular in the South. My understanding is that a lot of this type of development boils down to the urban planning departments in every city. Land is not at a premium in the south. Instead of building up, people build out. Structurally speaking, in hotter climates you want more surface area to allow the heat dispersion. The opposite is the case in colder climates. 

    Would be interested in knowing other reasons. 

  • Kim Meredith HamptonBusiness Member
    Real Estate Broker 路 St Petersburg 路 Member since 2014 路 2k+ posts 路 2k+ votes
    8y
    Juan, Have you ventured into the St Petersburg area over in Pinellas county? I think you would find a lot more of what you are mentioning
  • Kissimmee, FL 路 Member since 2018 路 3 posts 路 0 votes
    8y
    Marcony Simoes I lived in a single family on North Main Street in front of Bucks Hill Elementary. Before that in a multi family near the mall and a multi family near Fulton Park. I have family there now who also invest in these multi family homes. Some in not so great areas such as Grove Street, but despite those location cons, it seems like a unique opportunity for someone familiar with that area. I was hoping to be able to replicate that down here.
  • Kissimmee, FL 路 Member since 2018 路 3 posts 路 0 votes
    8y
    Omar, Appreciate the explanation. Everything you said is logical. My next question would be how do apartment complex鈥檚 who have more than 15 units for example, and are typically minimum 3 stories combat this issue that you bring up regarding heat dispersion. There are plenty large scale apartment communities in central Florida. I just wonder if there are any legal barriers to these structures first.
  • Investor 路 Fairfield, CT 路 Member since 2017 路 43 posts 路 19 votes
    8y

    Hey Juan, you lived in the better areas of town. I live in F airfield, about 40 mins away but i'm up there quite often. As for similar type of homes in Orlando, i really like your plan, unfortunately i can't offer much in terms of why there are not these types of homes there, i'd also be interested to know if its just a matter of legal barriers of entry, but if not, i think you might be into something good!! Good Luck!!

  • Investor 路 Taylor Mill, KY 路 Member since 2016 路 2k+ posts 路 964 votes
    8y

    @Juan Espinal Why are you so set on 3-4 unit properties? Are there larger apartment buildings in your area? 

  • Monticello, IN 路 Member since 2015 路 44 posts 路 9 votes
    8y

    Hey @Juan Espinal,

    We see new properties show up every week for the Orlando area. Properties are listed weekly as miss listed multi family, turn key investment, and and even 20% under value homes. From the data I have seen, Orlando seems to have a good mix of properties for all types of investors and income types. We see more duplexes or properties with guest suites/guest houses than tri plexes or quadra plexes. 

    Happy Hunting !

  • Realtor 路 Orlando, FL 路 Member since 2018 路 56 posts 路 28 votes
    8y

    OM multi-fam 5 Unit 2/1.5 bed/bth $560k cash in Osceola $5k mth rent. Needs minimal rehab, $2-3k/unit. message for details. 

  • Member since 2018 路 2 posts 路 1 vote
    8y

    As a native Floridian, I believe it has more to do with history and geography than zoning and building codes. We did not develop a large urban population until a century or more after the New England states. Most of the early population centers in the state were coastal which is where you find more sub-five-unit multi-family buildings. Add in a few post WW2 development booms focused on returning GIs, retirees, and tourism and the result was mostly single-family homes and large apartment and condominium complexes. 

    For better or worse, the Orlando area is less tied to maintaining historical elements with few exceptions. I have been seeing more sub-five multi-family new construction in traditionally single-family neighborhoods. They are not vacant long so there is obviously a demand.

  • Flipper/Rehabber 路 Orlando, FL 路 Member since 2016 路 311 posts 路 150 votes
    8y

    Multi Families are pretty rare throughout Central FL. Large condo / townhouse communities are obviously the most common things. I grew up in MA so I know up there triple deckers are very common but even today I bet you won't see many being built. I'd take 3 SFR's over a triplex any day of the week anyways.

  • Investor 路 Tampa, FL 路 Member since 2017 路 205 posts 路 92 votes
    8y
    Originally posted by @Chris Grenier:

    I'd take 3 SFR's over a triplex any day of the week anyways.

    馃憜Interesting @Chris. What's your reasoning? This sounds opposite of what I've heard before. Is it an Orlando-specific decision?

    Cheers.

  • Flipper/Rehabber 路 Orlando, FL 路 Member since 2016 路 311 posts 路 150 votes
    8y

    Hey i think we spoke about this...not sure, everyone asks the same questions haha. 

    Yes that's an Orlando / Central FL specific decision. 

    3 primary reasons SFR's better than multilfamilies.

    1) Easier exit strategies 

    2) More availability / inventory 

    3) Better ROI & equity generally speaking

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