All Forum Posts by: Shawn McCormick

@Gabe Nazario are you planning to self-manage? If you find the right PM and build that cost into your proforma (even if you want to self-manage, you should build that in) they can help with all of those other pieces. Some PM's will nickel and dime you, but finding a consistently available cleaner, handyman etc could make this a full time job for you and you'll wish someone else was doing that piece for you. I can recommend @Jay Breitlow to you for a very hands on PM.

As for the arbitrage piece, I just went under contract on a home that the seller has been allowing this from his tenant and there are a few others out there doing the same in some of the better communities. Most of those contracted during the height of the pandemic as a safety net to make sure the bills were paid. Now that the demand is higher than ever, it will be tough to find someone that will let you do that. And if you are in Jersey City and don't have the local knowledge/contacts of making a STR very successful in Orlando, that would be risky for me.

Best of luck to you!

@Saurabh Gupta I was just in that area today, not as far as Harmony..I don't know enough about it and it's really too far out of my scope. I don't think you will have the demographics you will want that far out. There is a new area being developed near Lake Nona called Sunbridge, prices are already steep, but the demand will be there and quality tenants too.

@Mateo Arias Gómez, valid questions. That is why picking the right market and understanding why it exists should be a starting point. If you buy in an area that depends on skiing and they have a couple mild winters, you aren't going to last. If you buy near a beach and flooding, insurance, hurricanes, local ordinance changes or a combination of all of those, you will lose. 

I'm in Orlando and believe me, Disney, Universal, Seaworld and all the things that feed it aren't going to vanish in our lifetime, so to me, it is one of the safest bets out there long term. Orlando was built for STR and as others have mentioned, do your job, stand out and you will do great.

Good luck!

@Saurabh Gupta Lake Nona is going to cost you, new construction is in the high $400's to start. Resales get gobbled up instantly. Since the majority of the area is new/newer, much less chance of getting something distressed, therefore values will hold for some time. 

What is your primary goal and are you stuck on Lake Nona? 

There are several other areas that are doing well and haven't reached the prices of Nona. So if you are looking for well qualified tenants stick closer to Orlando and bigger/newer areas (lake nona, winter garden etc) If you are looking for price point and new construction is an option, I would recommend getting in early on a bigger development so the builder will force appreciation for you and you'll still have plenty of tenant options. Deltona, Haines City, Davenport, Minneola, Groveland, Mascotte, Apopka are all big growth areas with a ton of new construction opportunities.

Best of luck!

@Mariam Dao I have some great contacts for theming/furniture/design that have done some great work for my clients. I sent you a PM.

@Mateo Arias Gómez Lots of questions to answer and reply to. I'm in and out of these homes alot. Damage is part of the game, that's why the profits are more attractive than a long term rental. You or your PM need to really keep up on all aspects of maintenance, I can't tell you how many sellers sell because they get 'bad reviews' and it's 'too much work'. These are a small businesses and have to be treated like such, you are reviewed and rated based on many factors. Most of your guests have saved for years to come to Disney, they want perfection and as a business person, you should give it.

Furniture gets dinged, walls get dirty, plates and glasses get broken or stolen. Build that into your pro forma just like you would vacancy rates, capex expenses for other rentals and you'll be fine. Theming will definitely play a big role in your revenue as Ryan has proven easily. I have walk-thru videos of some of the bigger homes in Storey Lake, Solterra, Solara, Championsgate etc. Some look great, some need work, but they could give you insight into what to think about.

Hope this helps a bit, always happy to help.

@Anthony Esposito Welcome to the forums of BP. You are sure to connect with tons of great people here. I'm in the Orlando area, so happy to help with any questions about investing in this area. I do a little in Tampa, but my expertise is in the Orlando market. 

What is the deciding factor between LTR and STR for you? Are you familiar with STR and all the regulations involved, it can be tricky depending on where you go. Many of the metro areas are hyper competitive right now, inventory is ridiculously low, forcing pricing up and interest rates are going up too, so crunch numbers and make sure they work and you have multiple exit strategies!

Best of luck to you.

 I agree with@Zeona McIntyre, Winter Garden is literally one of the best submarkets in the country, the value of the land could be a tremendous way to kick start your RE career without having to do much. I do know a few poeple that are doing small projects with tiny homes and eco-friendly homes, but depends on how much land you have and what part of WG it is in. And, although many try it and some will get away with it, I promise Orange County does not allow STR.

@Jim Halpert by no means an expert on this subject. But first off, if the property is in Orange County/Orlando you will have ordinances for short term rental to deal with, so that's probably not a path you can go down (if it is in Lake,Polk, Seminole, Osceola counties, not so much of a problem).

Rezoning isn't usually that difficult, but again, depends on the county and area of the county, some have density rules of X # of homes per acre etc. Doe the property have utilities, sewer, water, electricity to the other sections of the parcels? Are yo prepared to pay the impact fees and costs of putting utilities in? Is the current SFR in livable conditiion? What are the surrounding parcels zoned, are they all still Agricultural or have any of them flipped?

Best of luck, I'd love to follow along with updates as I'm in Orlando and always interested in or know people looking for opportunities like this.

@Andry Israel Congrats on your pre-approval and starting the process. What is your criteria, do you have some communities that you like? There are some that outperform others simply due to location and/or amenities. Size matters here to, some communities are saturated with smaller homes and you have to compete with your nightly rate against people who don't understand the damages they are doing.

I can tell you, most sellers (on the advice of their agents) are requiring you to waive the appraisal on these. I'm seeing them come in at value, but in case they don't you have to be prepared to come out of pocket the difference. Inventory is low (lots of homes being sold) but they sell so quickly, you have to be ready to go as soon as they hit the market.

Best of luck to you!