All Forum Posts by: Chris C.

Hey all,

I'm looking at a triplex in a target market. Cap rate is high, but the two units that are currently rented are behind. One unit is being evicted by the wholeseller that is working with me. The second unit will probably also be evicted shortly. I have been told end to end that the eviction process only takes 3 weeks, but I have my reservations. I understand that all 3 units will be fully rented before closing.

Would you suggest that I let the wholeseller work their magic, or just find a new place? Nothing strictly tying me to the evicted property, but just wondering if there had been any success stories doing otherwise?

Hi Amra - I moved from NJ around 8 years ago and have been very happy, financially. I think you're making a great move.

Everything, of course, depends on your budget. I found that the nicer MFH in the immediate Orlando and Tampa areas were out of my range, and the true MFH lots that I would have lived in were either too far from where I wanted to be or were too dumpy to get involved with. I think you could find some success if you picked up a really dumpy duplex or triplex and spent a lot of time, money, and comfort fixing it up. I'm assuming you want to be close to the parks, close to downtown, close to jobs, etc.?

If yes, try what I did: target SFH that have an "added bonus" room, or an in-law suite. You'll typically find this over a garage in new construction, but I have found properties that go back to the 1920s where this was being done. You could live in the in-law suite with your SO and rent the whole main house. You may run into some snafus with separate utilities, but I'm sure you could get creative - build it into the rent, etc.

Whatever you do, this market is very exciting. We are seeing crazy growth in all directions.

Man, this was tough to read. Sorry to hear. Doesn't she have anything going on? You think she'd enjoy looking at a nice reno-d house instead of whatever is there now. LOL!

I would document the hell out of this situation personally. It sounds like the current owner is backing off from whatever verbal deal they made with you. Unfortunate - is there any sort of relationship you can salvage? Get everything in writing of course.

It really does sound like the tenant is harassing your teams. I'd start considering some official legal advice as she's preventing your business from operating. If you have the documentation to show everything you're doing is within legal bounds and there's no HOA or deed restricting you from fixing up the place, the tenant, owner, or the owner's grandma shouldn't be able to stop you.

I would also continue to file complaints with the local police about the harassment or even go down to the station in person, meet the local officers, build a rapport. Show them that you're not trying to do anything funky or illegal, that you're investing in the town, beautifying the neighborhood. Get them on your side so that when things with the neighbor's tenant get worse (and it sounds like they might) you have a history with the local force and there's no surprises about Mrs. Crabapple.

Good luck!

You're going to have a lot of trouble rezoning. I might even say it's impossible, since most of the areas in Winter Garden are strictly controlled by the township or HOAs. Do it by the books because your neighbors will get curious and ask or poke around, and possibly report you.

You might get away with adding a seperate living space on the existing home, but it will be impossible to seperate utility lines and addresses unless you rezone.

Your realtor and builder will be able to tell you more.

@Jason Malabute You'd have more luck converting a SFH at that price point. Maybe consider a SFH outside an HOA with enough lot space to add an efficiency or mother-in-law, or convert a garage port? I've seen duplexes in the downtown area around that price but they won't be perfect.

A personal note: Two years ago I looked at a triplex a few blocks from Plant St at 250k. Definitely C or D class. Block looked unfriendly and I saw at least 10 trucks parked for the 3 units. Outer walls looked propped up with plywood. Realtor wouldn't let me look inside - no doubt even more issues there. Those were red flags to me and I went a different route. I bet that building would go for almost 300k today - that's how much the market has changed.

For me, I'd rather have an A or B class SFH than a C or D MFH if the profit margin is similar. I feel that the class of building comes with a different class of renters - read, less problems. How much time are you willing to commit to a problem building? You don't want your investment to be a time sink. Or, check a different market. Lakeland, Jacksonville, Gainsville may have MFH that cater to different renters at better entry points.

We're in a very tough market right now. Interest rates and sales are climbing. Would be worth it to really dig in and do your research.

Hi Jason,

In my experience there are two sections of Winter Garden you could be looking at

Plant St area - North section of Winter Garden. A lot of small-town feel here with a focus on shopping local and healthy. There is a large revitalization with a focus in the town's history of orange groves and award winning fishing. It has it's own unique feel. Because it's still coming up, there are a lot of opportunities here. It isn't exactly cheap for MFH units though, you will find them here at least as opposed to the south side.

South side Winter Garden - This area borders Windermere and the north tip of Disney World. Most land is SFH, new construction. Not a ton of MFH lots, if any.

Personally I think Winter Garden is one of the best markets in West Orlando to invest in, if you weren't continuing west to Clermont or even SW to areas closer to Lakeland.

I personally did not use a BP contract but I'm sure they are good. You'll want to customize whatever you use to prevent specific situations from happening. My leases are for one bedroom and shared use of common spaces. Change the language of any template document so that it reads clearly about how you are leasing the space(s).

For starters, I have clear language that dictates how often the house tolerates guests, to avoid that awkward scenario when Roommate B "has his girlfriend over a lot", which in certain scenarios becomes a live-in that isn't paying rent but is using water and electric. I also have language that specifies quiet hours and expectations of cleanliness.

Hey Sagi!

I do some flavor of this currently. First things first: Most of your tenants will be kids. Like, younger than college-age kids. A lot of people coming to work at Disney are a part of the Disney College Program (Read: Internship). Most do not stay long as "contracts" are 6-7 month stints. You will get more selection if you cater to this period instead of traditional year long leases.

Be ready for typical college-level issues: They didn't do their dishes from the night before. They leave a mess behind. Set up strict leases to help alleviate this. There are good ones out there, but prep for the worst and you won't be surprised when it happens.

Also - be ready for really off schedules. Most of your tenants will work weekends, or come back to the house at 12AM or later. You'll need to be ok with whacky schedules - no matter if it's a DCP kid or a lifer. Because of these schedules, I find that most of the tenant pool from Disney does not have the time or freedom to properly care for a dog. I have had 3 incidents with different dogs before I swore them off for good. Fair warning.

As far as zoning - Most of the area near Disney is SFH-zoned. You are probably talking big numbers (maybe 600-700k+) to get a MFH-zoned property within 20 min of the Disney area that isn't a dump and in need of severe rehab, I know from experience. There are some SFH that have garage apartments - this is your best bet if you wanted to set up a "Duplex" environment. Your utilities and your mail will still need to go to the same address though, so you will still interact at some level. I have friends who have "upgraded" their SFH with in-law suites and other separated living areas to achieve a better level of privacy and command a higher rent. You'll need to work with a designer or local real estate office I think on that one. The office will be more likely to give you advice if you use their agents to buy.

I warned a lot but have had good experiences too. Nothing like getting free or discounted tickets to events through roommates who are generally happy to live with you and are responsible adults who need a safe, quiet place to retire after a long day on Main Street. Personally, even after all my strife, I would do it all again for sure.

Feel free to add or reach out to me if you'd like any feedback on neighborhoods! In general, the closer to the parks, the better pool of tenants you have access to, assuming you do want to rent to Disney folks.

If my target was the panhandle be looking to beach rentals/AirBNB or to colleges. IMO.

From an Orlando-area perspective: I know people who commute all the way from Lakeland specifically because they could get a better deal outside of the Orlando market. If the market remains hot in Orlando I expect Lakeland to appreciate, especially considering the new hiring at Disney every year.

That being said, there are some other factors here. There are a lot of small towns between Orlando and Lakeland (And I imagine between Tampa and Lakeland) that would probably be a first pick for commuters over the midway point of Lakeland. You will probably see appreciation at every point between Tampa and Lakeland before Lakeland.

That being said, I think Lakeland is a nice little town with a stronger economy than other places further from I-4. Their downtown area is set up for growth and there is a lot of variety in the market at a low price range (SFH, MFH, etc)