All Forum Posts by: Shawn McCormick

@John Zhang okay, that makes sense. I don't think it will be a difficult resale because it is so unique to the area. I know one of the salespeople for Dreamfinders and she told me that a big portion of her buyers are from Orlando..seemed Windermere was the most common are to move from). It will get better once it sells out.

If I was comparing the two areas for future resale, I would go with Lake Nona, it is more diverse and well known. It is more than just one community, its a city. People can live and work there.  Bella Collina is somewhat of a lifestyle choice vs an entire area, most would be commuting out of Clermont/Montverde as there is no real jobs market other than retail, or hospitality to speak of.

@Account Closed Congratulations! Thats exciting.

A few things to consider 

-make sure you are actually pre approved, not just pre qualified

-see if the lender can provide a list of 'warrantable' condos, you don't want to waste your time with communities that are 'non warrantable'

-make sure the complexes are solvent..have money set aside for repairs to roofs, sidewalks, lighting, pools etc.

-make sure the association doesn't have any existing or pending legal actions, this likely will disqualify the complex by your lender. 

-make sure there are no upcoming assessments that you may be responsible for after you close. This could be thousands that you aren't prepared for.

These things should try to be done prior to you going under contract and save you money on paying for inspections and appraisals only to find out the complex will not qualify.

Don't want to scare you, but condos can be tricky if you haven't gone thru the process first. I would weigh the cost of ownership of a condo, including the HOA costs to buying a single family that may be a little more upfront, but overall costs are the same or lower. You will also almost always gain more appreciation from single family than a condo. If the condo falls into disrepair, it will be much harder to sell (you are dependant on all of the other owners/investors/HOA to maintain the property vs a single family that you control more.

Hope this help, best of luck!

@John Zhang I live in Clermont and know Bella Collina well and do a fair amount of business in Lake Nona as well. Bella Collina is incredible and hard to compare to other communities around Orlando. It started many years ago and failed during the recession. It was brought back several years ago and now has a mix of luxury homes, mixed with more traditional builders like Dream Finders and Toll Brothers..both building great homes and golf course lots are available. 

Montverde Academy is a big draw for this area and many more communities will soon surround Bella Collina with the likes of DR Horton, Pulte, Taylor Morrison and others building more spec type homes. The commute from there to downtown Orlando (<30), Disney (<30), Airport (30-40), Tampa/Clearwater (1.5) Cocoa Beach (>1). So it really is convenient and still growing. Taxes will be lower in Lake County too. 

Lake Nona is growing at break neck speeds and is looked at as more affluent overall due to the high paying jobs in the area. Many space related jobs will live in Nona and commute, not to mention all of the tech and health care, so it will continue to be attractive and appreciate very well.  To me, the infrastructure if already lacking and retail business is still playing catch up, so you have to be willing to deal with that. Taxes are higher in Orange County too. IMO, the traffic patterns to Disney and Downtown Orlando are something to consider as they can be more congested even though the distance is similar to the Bella Collina drive. The airport and East coast beaches would be a plus if those are important to you. 

We have toll roads everywhere, so that is worth mentioning. They add up pretty quickly and will be needed to get anywhere from either of these locations. Both areas are experiencing quite a bit of growth, but in Bella, you will be East of most of it and it shouldn't affect you as much, Lake Nona is congested and will be for years (depending on where you wind up).

I would also throw in Windermere if you haven't considered it yet. It provides 'status', luxury, location, great schools, prep schools/academies. It is also Orange County, so taxes will be similar to Lake Nona. It is very convenient to Downtown, Disney (you will see fireworks nightly!!) and higher end shopping and the best restaurants around. 

Hope this helps, happy to discuss further if needed. 

Best of luck to you!

@Sean David Gibson Would be happy to dive a little deeper into exactly what you are looking for. STR, LTR, multi-family. I'm in Orlando and certain I can assist you, but most of the companies that were buying, renovating and then selling turn-key rentals have gone away.

I might suggest looking into new construction communities if you want to avoid (not completely) cap-ex and have all your investments in one place with tenants willing to pay a little more to be in a new house in a 'nice' neighborhood. 

Feel free to reach out if you would like to go over more specific criteria.

Best of luck

@Hung Ma Welcome to the forums! Glad you are finding value here.

You are looking in the right area, keeping as close to Disney as you can. Your budget will only get you into a resort community if you look at condos and townhomes, you'll have enough options to achieve your goals. There are several available in some of the better communities (Windsor Hills, Championsgate, Paradise Palms, Storey Lake) that are all under $400k.

You didn't mention your loan type and down payment, using a big chunck of cash to put down will eat into any renovation budget and sounds like you are all in at $400. 

If you are using websites to sort thru communities, you are likely not narrowing down to just the ones that are specifically for STR, which you need to be. Happy to help point you in the right direction.

Best of luck!

@Chase Leavitt. I'm in Orlando and can speak to most of Central Florida, we are drastically underserved in multi-family. There are a couple of players just getting started in the build for rent model, so some of the homework has already been done. The biggest one is in Kissimmee (Osceola County). But you would do well anywhere within an hour of Metro Orlando. 

I agree with Kim that Polk county would likely be the best target as it's a middle ground to both Orlando and Tampa. As both those markets force out many buyers due to inflating prices, they are flocking to Haines City, Lakeland, Davenport etc. 

Would love to be updated if you decide to move forward. Best of luck!

@David Jean-Georges

Sorry about your situation. I totally agree with @Michael Baum, you really don't have options unless you could do a HELOC, depending on if you have any equity or if you 'overpaid' for the house last year. Unfortunately, Deltona isn't close enough to Disney to really do well with Airbnb. I do have friends that are successful in Sanford, Deland etc, but it is harder.

If you are really in a bind, maybe consider selling your house subject to the current mortgage (this will only be attractive to a buyer if your interest rate is 4% or below since the mortgage is still so new AND you have equity. IF...that is the case, you might get enough cash to go buy a multi family and have a better shot. 

As far as DSCR, they are higher interest rate and generally 20-25% down payment (some exceptions could get you in with 15%), so that is definitely not an option for you. If you are a Veteran, you could use your entitlements for a VA loan (0% down) Parts of Deland are eligible for a 0% down USDA loan, but the requirements for you are higher (credit score/income limits).

Hope this helps, best of luck.

@Santosh Prabakar Tyler is correct, many things will factor in what your rate is, all of what he said plus what flood zone you are in, the number of claims in the area you are buying, your personal claim history etc. Insurance companies have sophisticated software to determine if you and the property are worth the risk.

If the home is more than 20 years old, plan on paying for a wind mitigation and 4 point inspection along with your normal home inspection. I would also look up any properties you are interested on the property appraisers website and look for permits. If the age of the roof cannot be determined, the insurance company automatically has the upper hand.

Hope this helps, best of luck! I do have a great contact for hard to place properties (flips, renovations, buying in trusts or LLC etc).

@Michael Senia

Welcome and congrats getting started. Don't give up, everyone goes thru this, but most don't stick with it because its too hard or too confusing and then never do a deal..I've seen it dozens of times personally.

I would invite you to attend CFRI, the local chapter of the national REIA. The general monthly meeting is next Tuesday and there will be a couple of hundred local investors there that you can network with. There are many other meetings throughout the month for you to attend and soak up knowledge too.

I'm local in Orlando and would be happy to speak with you if and see if I can add any value to your journey.

Best of luck to you.

@Jake Warren Plenty of great areas mentioned already. Many variables to your goals... do you plan on building a portfolio in Flordia..look more long term metrics if you do, not just finding a deal now.

Insurance is plaguing the state right now, so IMO, I would stay away from anywhere near the coasts and really vet the property for 4 point inspection items as providers are getting really tough on binding policies. 

Another thing to consider is financing. It looks like you are from Canada and that's 30% down with different underwriting guidlines, so be ready for that too. If you need a couple recommendations for mortgage brokers let me know. 

Best of luck to you!