All Forum Posts by: Shawn McCormick

@Heidi Cousineau

Welcome! I'm in Orlando and saw you mentioned you wanted to use the property as a STR. There are some lenders that can work with a 10% down for that purpose, but plan on 20 to when running your numbers as you or the home may not qualify for 10.

Are you looking at something near the Disney area? We have lots of great resort communities that would be great for what you are looking to do. Let me know if I can provide any insight. 

Best of luck!

@Josias Jordan

Welcome to the forums and congrats on taking the step. We have a very active community of people in Orlando. Happy to connect on any level, perhaps come out to CFRI meeting next week and meet a lot of local investors, trades people and make some connections there too. 

Best of luck!

Hi @Simon Lee Sorry I'm late to the game here and thank you @Michael Baum!

Much has already been said here, but I'm open to a zoom or phone call to discuss my experiences with other investors that I've worked with in all of these communities. It is great to get points of view from property managers, owners and Realtors to round out expectations and insights.

Let me know if I can provide any other value to your search. 

Best of luck!

Encore is within Reunion, there are a few different communities inside and all have different rules. Encore, you would need a membership, if you purchase in the new phase (Spectrum ) they automatically come with the amenities (membership) included to your guests, but the HOA and management have other restrictions and all units come furnished with the same packages, so you can't make changes to have it stand out, which is what is really needed hear in Orlando since there is so much competition.

Although Reunion community does typically cater to a different demographic so it won't be as much of a pitfall. 

@Michael Elliott

Solara is just one of many resort communities that are specifically built for STR. A few of the other top communities that you want to consider are Championsgate, Solterra, Windsor Island, Windsor Hills, Paradise Palms, Windsor at Westside, Storey Lake. These are all STR communities that have similar amenities, close to Disney and have various sized homes that do well in the STR space.

None of these communities will be changing to residential neighborhoods, although a couple do have residential 'sides' that full time residents live in and can not be rented short term.

Two of the big communities that you will have some issues with self managing are Reunion and Margaritaville. These both have restrictions on membership/guest amenity usage. I personally would stay away from condo-tels as they will be even worse and you'll have less opportunity to cash flow. 

Hope this helps, best of luck!

@R. Elle Berry some good points here already, so I won't go too much into whats been said. I actually teach other agents how to have conversations with sellers on what is the best option for them. Do they have the money to fix their place up prior to listing, can they wait 60-90 days to sell and close? 

Agents should wear two hats into every listing appointment, a licensed, ethical Realtor hat and an investor hat that can help them no matter what their situation is and come out of every appointment with a resolution for the homeowner.

To specifically address your question, my thoughts would be that the wholesalers you are being contacted by don't have a good buyers list and are using you to reach out to your network. Wholesaling has become a low hanging point of entry into quick money due to all the Youtube, tiktok etc videos telling people how easy it is and you don't need any money or a license to do it, they quickly realize neither of those are true. 

In markets like Orlando, where I am and where it sounds like you want to be, there are several very large wholesalers and hundreds of one-offs vying for the few deals out there and when they aren't turing 5-10 properties a month because the market dictates higher prices, it drives investors into more affordable markets. Most of the wholesale deals I get are far outside of Orlando metro.

Hope this helps. Best of luck!

Thank you @Michael Baum! Hey @Jack B., I would absolutely agree with Tyler. Literally came from Poiciana less than 20 minutes ago (see photo..this isn't the only reason I hate Poinciana, but it is now on my list!!) I have sold several homes there and it is absolutely NOT where you would EVER put an airbnb!!!

I won't speak on Tampa, but it is a powerhouse in rankings for growth. I do however, know the Orlando area very well and specifically STR's in the Disney area. To answer your questions.

1. There are dozens of communities within 10-12 miles of Disney that you should consider. There are less if you only focus on the best of the best communities that are built specifically for STR, not for families to live in, they are resorts. That is where I would focus and that is where you will have the best shot.

2. There is a debate on self-managing vs. hiring a PM. I would strongly suggest that if you are not familiar with the STR space, especially in a large/competitive market like Orlando. Build in the cost of a PM for at least one year. Let them do all the hard work of websites, algorithms, marketing, automation, price analysis etc and learn from them. Once it is all set up and running and you have tons of great reviews...then try it on your own and save the money...but only if you are willing and able to commit to doing all the work.

3. Most PM's here are 20%. Since it is such a huge market, we have all sizes and types of PM's. You have 'hosts', property managers and full service property managers that will have on staff maintenance, cleaners etc and be a great resource for decorators, a/c techs, pool guys and marketing.

Happy to dive deeper and have a call as there are many nuances to this market that you should consider.

Best of luck!

@Brandon Collins I have friends that own STR's in smaller markets including Lakeland, Sanford, Eustis, Casselberry and all do pretty well. The reason is choices, in smaller markets ,there aren't a lot of hotels, let alone airbnb's to choose from. It doesn't have to be super fancy, most people come to those places to visit family, funerals, spring training, family reunions etc so there is definately a market.

Do some searches and see what the competition is doing with decor, pricing, amenties etc. What the nightly rates are and how often they are booked, then work backwards into the property you are looking at and see if they would be profitable after you buy, fix up, furnish, pay taxes and insurance, marketing, cleaners etc. 

I think for the price point, you might be better off doing LTR or Mid term honestly, but due to low competition, STR may be the way to go.

Best of luck!

@Damon Kellar I've been on BP for several years and haven't gone yet, but just registered yesterday. I get to come home every night since I live here, but networking and investing in your education is paramount. Relationships matter and having/meeting like minded people from all over will serve you well. 

I would encourage to get you SO on board because this can be tricky, scary, risky and you don't want to be jeopardizing a relationship before you even get started. 

Hope to see you there, best of luck!