All Forum Posts by: Shawn McCormick

@Shawn. Can you PM me details please.

@Robert Rixer you can try Nreig, many investors use them that have portfolios or larger properties. I personally use a broker for my properties so they can shop around, unlike Allstate. Colleen Pacheco with Secured insurance in Orlando is a friend and is fantastic. I would start with her and if she can't help, she'll have suggestions for you.

Best of luck!

Hi @Caesar Bhagroo welcome to Florida and Bigger Pockets. I'm also a Realtor® here in Orlando and also on the board of CFRI, the local chapter of the National REIA. Would be happy to connect and see if we can provide some value to each other and mastermind.

Best of luck to you!

 I'm sorry, but if you don't have it under contract, I wouldn't be interested. Does another wholesaler have it under contract and you are trying to help them or just daisychaining?

@Jackenson Deshommes we are going to need a whole lot more information than that! Are you direct to seller, is it under contract now?

Price

address

location

title company

deposit amount

inspection period

ARV

repair amount......................

Hi @Kari Munoz Welcome and congrats on getting started! I get investors looking in Miami and from Miami looking here, maybe we can do some referrals together. Always love to network and collaborate, let me know if I can do anything to help!

Best of luck!

@David Sanders Good insight from @JD Martin. I do believe for what you clarified from your original post that breaking even is okay and you'll be using it for personal use that you can do this. 

I always start off clients in the resort style communities rather than trying to make a go at it in a 'regular' community. You mentioned a couple, but most of them start single family homes at 5 beds, so not sure of your budget, but that will open up several more opportunities. Windsor Hills is a great choice, Emerald Island will do well also. Both of those properties are older and may present opportunities to get in at a lower cost since you are willing to do the updates yourself.

I would suggest if you are going to go with more moderate theming, a larger house will suite you better. Think that the parents need a primary bedroom, that leaves 3 for kids. Which way do you go? boys or girls, toddlers or teens, scary or imaginative. The more bedrooms you have, the more risks you can take without alientating a family with all boys (princes beds) or that are all still young (star wars). Bigger homes just perform better here for this reason. 

Hope this helps a bit, happy to dive a little deeper with you if you want and maybe have one of my PM's run some numbers for you based on actual bookings and data, not just airdna etc. 

Best of luck!

Sounds like you don't know Orlando as well as you may think. We actually have a couple dozen great communities built specifically for STR and we have much much more than Disney that people come here for. In fact, most of my clients that own STR's near Disney say that only about 40% say they are here for Disney. Its the location to Disney that is the key, thats just where the zoning is friendly and the inventory is plentiful.

@Adam Marx what are you intentions with the property? Is the ARV to flip or to buy and hold? You said 'I'd put ARV safely at 225-275'. That is far to big of a spread, you need to be much more accurate especially if you are flipping it.

Some things to consider if you are flipping. Maybe pay for an appraisal up front or if you are financing, the lender will do one and if it doesn't appraise, you can walk away with no consequences other than your time. Are you working with a Realtor® or a contractor, both can likely solve your problem as the agent will have access to more data and knowledge of how to run comps, the contractor will be able to give you a better idea of repair costs. Then tell the agent to run comps for ARV based on updates you do.

And you also said you can't afford to lose $20-30k, the most seasoned flippers/investors lose money all the time, and ultimately that is part of your education costs, hopefully you don't make any costly mistakes, but you have to run your numbers well enough to make sure there is some 'ooops' fund to help shield you from that.

As for comps, typically, appraisers want them to be in the same neighborhood, within 15% same square footage, same # beds/baths and age. If they can't find those things, they will go out a little further (start at 1/2 mile, then mile and so on) Then they will make adjustments to bed/baths/sqft. Say yours is a 2 bed/1 bath all other comps are 3/2's. They would subtract the value of a bed and a bath, maybe $7500 for a bedroom and $5k for the bath and then factor the same for other things like pool/no pool, 1/4 acre vs 1/2 acre and so on. So you can do the same thing, but you have to know what a bedroom is 'worth' in that area. Some areas a bedroom is $5,000, some $10,000.

Something else you could do since the property is off market, is negotiate with the seller to bring them in the deal. I'll pay you 'X' and also X% of the profit when I sell. So the better you do they make more too. But if your ARV is way off or you finish the flip 5 months from now and the market has shifted and you don't make much, neither do they. Lots of other ways to structure those too with the seller, thats just one example.

Best of luck, keep us posted!

@Sejin Kim you will definately want to be there for the final walk thru, especially if the tenants will be out before closing so you get a true picture of the condition after they remove their belongings. If they are going to be there post closing, at minimum have your agent do a final walk and take photos and video as you will now be the landlord and responsible to hold them accountable for any damage, so document.

Once you get it up as a STR, you should go at least once a quarter to make sure cleaners are doing a great job and make any needed repairs or adjustments. I recommend spending a couple nights in the unit so you have the perspective of a guest to notice anything you are missing or need and develop a check list for your cleaners and/or property manager.

Your agent should be advising you on all of this and more and have local contacts for you.