All Forum Posts by: Shawn McCormick

@Syed Taqvi Feel free to reach out, I've helped dozens of other BP members for the exact thing. You could use the agent finder tool at the top of the page too. 

Best of luck to you!

@James Shuster Are you looking for duplexes here too, you mentioned 'a unit or two'. Just wanted to make sure as they are in low supply in Orlando and especially anywhere near Disney (in a 'good area' anyhow). Your next challenge will be down payment/closing costs. You'll likely need 20% down, so your $60k won't get you much anymore. There are many new construction communities near the Haines City/Davenport areas that you can get into fairly cheap, but they are all single family. 

Happy to talk more about your options and ultimate goals to be able to give you a better outlook, feel free to reach out.

Best of luck to you!

@Armel Bemmo Although I lived in Nashville many years ago, can't speak to it today. I have been in Orlando for 18 years and have many clients that do well in the STR space here. There are some things to consider though.

1. If you buy and ordinary property in a so so community, the competition will basically dictate your nightly rate and you will cap out.

2. If you buy too much house and don't know how to manage everything properly, you may wind up with bad reviews and hurt yourself. Also if you buy too big, and it takes you awhile to ramp up your bookings, you may get frustrated and not be able to cover your expenses.

3. If you buy a good house in the right community that has great amenities and location to Disney and invest to make it stand out (theming), hire great cleaners and stay involved with your guests, you can do well. 

That being said, this is a big market for STR and so many do very well and so many others just get lost in the shuffle. Orlando is made for this year round with so many other things besides Disney. Happy to discuss further or answer specific questions if you have them.

Best of luck to you!

@Lauren Beech Welcome to BP and congrats on getting started.

I'm in Orlando now (18 years) and lived in Cleveland for 10. I currently have properties in Toledo and OOS can be challenging. Florida and Ohio are vastly different markets for many reasons, but RE is pretty much the same if the numbers make sense and you are comfortable with the property. 

I might suggest to keep the house you have here, (assuming you own it) You likely have equity and are familiar with the area, so thats a good place to start. Perhaps use the equity to use as a down payment for your first Cleveland property? This will give you a jump start of not pulling the trigger in Cleveland while you analyze properties and wait for the perfect one..you already have your first one, so the second will be much easier. 

Best of luck to you and let me know if I can help in any way!

@Xavier Harris Welcome to the forums and congrats on taking the first steps. I am local to Orlando and have helped dozens of investors figure out what is right for them in our market. For many, STR are the way to go here as we are built for it long term, not just jumping on the latest bandwagon area. Others see the long term benefits of student housing or long term rentals that there is a strong demand for and continue to appreciate.

I would just soak up some education and see what fits in your wheelhouse of understanding how they work (STR, LTR, flipping, notes, PML or whatever!) and then join your local real estate investor meet ups to get some real world experience and knowledge. ( I like that better than podcasts, but any source that works for the way you learn).

Once you figure out your risk threshold and eliminate the shiny objects so you can focus on one or two types of investing, maybe plan some trips to Orlando to learn more about what areas offer what you want. Start building a team of like minded people locally that you can trust and  lean on for information. Just know there are no short cuts to be successful at this.

Best of luck to you!

Who is your target renter..corporate, nurses, construction, tech, space industry....When choosing a location, try to factor in how much need there is for the particular industry that you believe will be your audience. Perhaps reach out to HR people at the companies that may bring in MTR and market directly to them. 

HOA's will be tough to avoid if you want to be in a good area of Orlando.

Best of luck to you.

@Eder D.

@Drew C Grossman nailed almost everything I was going to reply, glad I read his first so not to sound like I was piling on. But his assessment for price, availability and ROI for the area and numbers are spot on.

I'm happy to discuss options if you are open to them.

Best of luck to you!

@Evan Linder Congrats on getting started and willing to take some risks!

1. renting by the room. I am on your side, privacy is a huge concern. This works with college area homes, but for me, not as a house hack that I would be living in. There are many leases available online or you can have an attorney draw up specifics to your criteria and needs. 

2. Orlando multi family is exactly as you say. The closer you get to the city, the more you pay, that is just the way it is in any metro area and don't hold your breathe thinking that will change. If that is really what you want, either save up and buy a decent one or suck up the commute knowing the end goal is to build wealth and there are rarely shortcuts, only sacrifices to get started!!

3. ADU- each county/city/municipality will have its own rules and allowances for this, there is no blanket answer. If you are going to stay strictly in Orange County, then focus on what they allow and don't. Be prepared for long permit times, the area is growing and that puts strains on all areas of county offices. Plan on using a GC, getting plans drawn up and likely engineers too, it won't be easy.

4. If you are house hacking and looking for easiest point of entry so that you have money to add value to the property and not use all your saving on the purchase, FHA would be the way to go. Then you move on to the next one and repeat. Unless you are a veteran and can use your VA entitlements, FHA is the route. However, the condition of the property will be important here, FHA rules are more strict than going with a conventional loan, so make sure the property is in good shape.

5. Many of the agents on here, including myself are here because we are investors ourselves. So using one of us makes sense, but still, interview and make sure they understand YOUR vision. Every investor has different experience levels, goals, timelines and so on. You understanding your goals and vision are paramount to connecting with the right agent, we are not CPA's or lawyers and don't always know what is best for you, we facilitate real estate transactions and help educate you along the way.

Hope this helps, best of luck to you!

@Mona B. Depending on how much rehab the property will need, what county you are in (Lake, Polk, Orange, Seminole or further out will be factors. If you are just guessing on rehab amount and ARV and don't have contractors giving you up to date figures and using accurate comps, than end buyers will not look any further.

Your fee should be baked in before the 75-80%, but with the market trending flat to down, I know my self and other local investors are shying away from those numbers and looking at 70% again. 

Hope this helps, good luck!

@Devonte Wilson, looks like the consensus is definitely a pool and I completely agree. If you are looking to be close to Disney, the few things you want are a community that has top-notch amenities, closest to the parks and a house that has a pool and is themed out. If you choose one of the top communities, every single home already has a pool and a screen enclosure, they are literally built for STR and that is an absolute must. You will even see a slight decrease in bookings if your home happens to not have a hot tub, there aren't too many that don't, but if it comes down to it, there is data to support one with will do better.

Hope this help, best of luck to you!