All Forum Posts by: Devin James

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Quote from @Devin James:

Quote from @Dennis Bragg:

Hey @Devin James

Your thoughts on affordability and density resonate with me. I’ve seen developers in Phoenix transform underused lots into thriving micro-communitie. One developer I worked with built smaller homes around a central courtyard, and buyers appreciated the balance of affordability and community.

In San Diego, where I’m based, density has taken a different shape...like ADUs (Accessory Dwelling Units) that maximize land value. I read something recently in The Economist about how smaller units increase land efficiency.

Have you explored micro-communities or shared amenity setups in Orlando? I’m curious how those resonate with buyers there.

My first home here in Orlando had an ADU. Great use of space and provides additional income to offset the monthly payment.

Orlando, and many other cities, have a "missing middle" problem in regards to housing. 

Municipalities either want Class A multifamily, or 2000+ sqft homes on .25 acre lots. 

There's a huge demand for Townhomes, Duplexes, Triplexes, Quads, and smaller multi's.

I love cities who can implement those micro communities. I can see the vision but they are not yet put to use here in Orlando.

It's great to hear your first home had an ADU...those are game-changrs for both space efficiency and offsetting costs. You're spot-on about the "missing middle." I've seen this issue in San Diego, where a friend of mine worked with a city planner to rezone a lot for duplexes and triplexes. They framed it as a way to provide workforce housing, and the project not only sold out but became a model for similar developments.

I read a piece in Forbes recently about how smaller multi-units are reshaping urban housing. In Omaha, smaller multi-unit builds with shared amenities like co-working spaces are cacthing on. People appreciate the balance of affordability and livability.

What’s been the biggest hurdle for Orlando in pushing these types of projects forward? Zoning issues? Or are developrs hesitant to take the leap?

Love to hear it!

Mostly zoning issues. 

Specifically for us, we focus on the outskirts of Orlando. Many of our developments are turning unprofitable citrus groves into SFH's.

I do think there's a trend towards BTR (Horizontal Apartments). Here's a project we sold to Taylor Morrison that will have this new type of housing. Super cool apartment style living, but all one story.

Repurposing citrus groves into SFHs is a smart move...turning underused land into vibrannt communities. I’m also a big fan BTR developments, especially horizontal apartments. They offer renters a unique option that feels like home but without the long-term commitment.

A developer friend of mine in San Diego recently completed a BTR project on a former industrial site. I saw a report in Forbes about how BTR developments are shaping suburban rental markets. The concept of single-story units with private patios caught on quickly, especially among young families and empty nesters.

Do you think these horizontal apartments in Orlando could help bridge the gap for middle-income renters? Or are they more likely to appeal to renters in the higher-income bracket?

It's great to hear your first home had an ADU...those are game-changrs for both space efficiency and offsetting costs. You're spot-on about the "missing middle." I've seen this issue in San Diego, where a friend of mine worked with a city planner to rezone a lot for duplexes and triplexes. They framed it as a way to provide workforce housing, and the project not only sold out but became a model for similar developments.

I read a piece in Forbes recently about how smaller multi-units are reshaping urban housing. In Omaha, smaller multi-unit builds with shared amenities like co-working spaces are cacthing on. People appreciate the balance of affordability and livability.

What’s been the biggest hurdle for Orlando in pushing these types of projects forward? Zoning issues? Or are developrs hesitant to take the leap?

Hey @Devin James

Your thoughts on affordability and density resonate with me. I’ve seen developers in Phoenix transform underused lots into thriving micro-communitie. One developer I worked with built smaller homes around a central courtyard, and buyers appreciated the balance of affordability and community.

In San Diego, where I’m based, density has taken a different shape...like ADUs (Accessory Dwelling Units) that maximize land value. I read something recently in The Economist about how smaller units increase land efficiency.

Have you explored micro-communities or shared amenity setups in Orlando? I’m curious how those resonate with buyers there.

I'm in the same boat. After 16 years in my career (RE broker) and 13 years as an investor, I'm at the equity growth stage as well. 

I shifted from investing with a cash flow focus to the appreciation and tax benefits side of things. C class areas/properties to A class areas/properties. I always make sure that the properties are cash flow positive, but the large bulk of the money I make from them is from the other items (appreciation, debt paydown, tax benefits, etc). 

It seems to be a pretty natural evolution for many investors. When you don't have any money/equity (early in career and/or early in your investing journey) the tax benefits are pretty minor. But, once you do build some wealth and have a high income, you realize how much you can save/make by owning the right real estate - numbers that far exceed any cash flow you might make on a property. 

I feel like theres more opportunity in equity growth, but I personally am in the Median income area - I like to see a little cash flow and have good tenants. Also, if anything were to go wrong I wouldnt have the capital available to pay extra on a property every month. 

OP why?

Forget the politics.  If we bring in 20mm people with no money they take up all of the low priced housing.  This in turns hikes the price on mid size housing.      Plus it drives down wages so existing population can’t move up in housing.

Add in Airbnb and you drive up housing.

Add in tariffs for Canadian lumber 3 years ago and potential future China and Mexico tariffs.  

Don’t see cheap housing in the future.  Unless as stated above there is cheaper housing out in the country side.  But most ethnic groups always start in large cities.  

My family with 3 young kids on an E8 wages started in a trailer and apartments.  Later the American dream 40 acres and a large house.  Opened a trailer park next to our house for military.  

Who is your market for lower cost housing.  As a developer what plans and developments do you have in progress?  

The problem is the government would have to get out of the way. And I don’t know if they’ve ever given up a power they took or a fee they’ve imposed. 

Look at every single existing and new build. The cost per sf skyrockets as house size decreases. 

You could convince people they should have their kids, parents and/or grandparents live in their houses with them. 

Ps. If smaller living space was the answer we could just build a boatload of 1000 unit apartment buildings. (Call them condos if you want the pride of ownership.) But Americans have pets they love and want our space. There’s a boatload of affordable housing across the country in small towns. But affordable housing isn’t good enough. It has to be in the most desirable/expensive areas of the country. Many people assume they have the right to affordable housing in markets the middle, or even upper middle class can’t afford. 

I think it's not as worth it for builders. If they can build a larger home and sell it for the same or more rather then building a couple small homes why do it? I also don't think the price would be cheaper then preexisting homes. The smaller new builds still go for a pretty penny in my area and it's not affordable compared to what else is out there. If someone would choose a new, small 2/1 for 250K or a 3/1 1950s build for 250K they would choose the bigger one all day long. Just what I see