All Forum Posts by: Daniel Araque

@Daniel Araque. ORLANDO / KISSIMMEE

As a local expert in the short term rental industry,

I would like to make myself available to open discussion on the most profitable short term rental communities and why. Performance, occupancy, and budgeting are all extremely important for yielding the highest return, ask me how to find the best deals.

Hello everyone!

If anyone needs tips or guidance with first hand experience in the Central Florida (STR) Short Term Rental market feel free to reach out. I am an experienced agent in the STR field and would love to share my current success with several investors.

1- Would it be worth it to finance a STR property? What are my NOC? What communities have the highest occupancy rates? What type of home performs best, 5 bedroom, 8 bedroom?

@Blake Williams Hello Blake, 

This is the simplest way I tell my clients. 

Ex. Say your maximum loan Amount is $190,000 and your maximum purchase price is $200,000, due to the fact that you are putting down say 5% ($10,000).

The home you want is listed at $195,000 and your agent is telling you to offer $190,000 with no closing cost contributions, meaning you would have to come up with the closing costs (approx. %3) out of pocket and 5% downpayment as well. Estimated $15,200 to close 

Or your realtor could tell you to offer the full asking price at $195,000 and ask for 3% seller contribution, which would be the  $5,850 that would be effective money going towards your upfront closing costs, meaning you would only have to come up with the 5% of the new purchase price of $195,000. Estimated $9,750. 

What your realtor is trying to say is, instead of paying the closing cost up front, you will go up in price which would  obviously adjust slightly higher on your mortgage, but your seller would take the weight of paying the upfront cost of closing, which some people might not have handy. Sometimes these contributions are what save the deal and slight negotiations in higher purchase price are effective. 

Hope this helps. 

Dan. 

@Michael Manger Hi Michael, 

And yes, you should be very proactive in attaining a pre qualification for a loan. If you are serious about buying wouldn't you want to know what you can afford to buy before you speak to an agent. 

Of course a good agent can help you find your way to a bank or a lender, but you have to show initiative or be motivated to make those calls or gather the paper work necessary, to get pre approved.  

If you are looking to invest in Central Florida I would be more than happy to show some guidance. 

Best regards, 

Dan. 

Hello there Alb, 

Well the first thing I wold ask you would be, how well do you know your agent and did he do a good job representing you in your past? 

I think this could be a great idea because if he/she is a good and knowledgeable agent they will have a good understanding on the estimates and values of the home. Just make sure they have done at least one of these flips before or have been involved with a flip. Sometimes the acquisition costs and paperwork could be difficult and they will need to know how to handle it. Also make sure everything is clear and disclosed, as far as accounting for any buyers premium cost, commisions made (purchasing  + selling)  , etc. 

Have good contractors lined up for the estimated repairs and account for a rehab-sellig time frames.   

@Pyrrha Rivers  Hubzu deals are either smooth or not at all from what I have seen. However when we are pretty affirmative we are hitting a deal it has been wise to take the chance and hit a smooth ride or a storm of problems. 

I am glad you were able to success with your experience as well! :) 

@Andy Bankston  Thank you! and it was a property purchased on HUBZU.com.  Very few people were bidding on the property. I went to see it in person and inspected through all the windows to get a better idea of what I was dealing with and all it needed was a new kitchen, and new bathrooms. Floor/roof/A/C/electric were all in great conditions. 

We also painted the exterior of the home and updated the landscaping. @Pyrrha Rivers

Property was inquired acquired for $136,000. Listed for $205,000. SOLD for $201,000. RETURN: $41,000. 

Good Evening Stephen,

I might not be too resourceful in the areas you are interested in, however if you have any interest in investments, short/long term in central Florida. Feel free to send me an email and I will be more than happy to help you expand your investments. 

Orlando Florida is hot and booming!!