All Forum Posts by: Shawn McCormick

@Candice Bernard I can't predict the market in a couple of years, but townhomes sell just as easy. It is an easy point of entry into homeownership or for people that don't like to do exterior work (paint, lawn care, pressure wash etc and want a maintenance free home). The price point of a townhome is lower and that means more people/families could get qualified for loan to purchase. Since this community is able to be rented short term, you also could sell to another investor looking for a STR or LTR as well as a family looking for a home.

@Andrew Brown how do you plan to use it, are you looking for a condo in the STR communities that you can use when you come visit your daughter or something for her to live in or strictly as a LTR investment. Our rental market can't get much more in demand, but the numbers will have to make sense with condos generally having very high HOA fees and many have limits on the number of non owner-occupied units. When you go to sell, you may have a limited buyer pool for the very same reason, along with the solvency of the HOA at that time and lenders willingness to lend in that particular community.

Best of luck!

@Candice Bernard for you first unit and budget, that sounds like a good start. I agree with both sides of the analysis that others have pointed out. I don't feel that is a great area/community for long term renters myself. It is not geared for that and you will likely have lots of turnover and not quality tenants. Use the unit as a stepping stone to learn the STR business and how to manage it, the tools that are available to you so that you can ween yourself away from a property manager down the road (if you want to and if you have the time to).

I advise starting with a property manager that has proven results and can help you learn. If it does well and it makes the $500/mo and the unit will likely appreciate in the next couple of years, sell it and move up to something bigger that will provide better margins. Cash flowing properties are hard enough to come by in the LTR game right now due to the high cost of entry. The rental market is fantastic, but most are getting appreciation rather than really good cash flow. 

Hope this helps, good luck.

@Jason Lagan you should look into joining CFRI. They have 6 county meetings and about 15 subgroup meetings every month on different subjects along with education, networking and seminars. Well worth it.

@Derrick Thomas, first off, welcome to BP and THANK YOU for your service! You should absolutely take advantage of using your entitlements. Getting a VA offer accepted can be challenging due in part to the stigma and the appraisal pool is different than for other loan types and that often causes them to take a bit longer, but not always. So don't be at all intimidated by offering, just make sure your lender is on top of it and is very well versed in them.

I will say that in Orlando, given our tight inventory of multi family, going FHA/VA is very tough and I'm speaking from direct experience, dozens of times this year. Cash buyers will beat you out everytime and there are plenty of them. I don't believe Doing STR with your VA loan is allowed. (someone please chime in). You can do a LTR and provide a lease and that is fine, but just not sure they will allow the uncertainty of consistent cash flow on a STR.

Best of luck to you!

@Wei Jie Yang Orlando is definitely a viable option for you in that price range. You would get a condo, townhome or smaller single-family right in the best resort communities near the theme parks. We are built for STR in this area and have year round, consistent travelers, great airport, close to beaches and...did I mention theme parks! Best of luck!~

Hi @Ishay Blutner what has brought you to Orlando to start your investing? Have you done any research to help support your budget and C class areas. Orlando is pretty diverse as we have people moving and investing here from all over the globe. IMO, $80,000 would only get you a mobile home or condo and neither would be very desirable at that price point and location.

There is plenty of threads here on BP about Orlando and almost anywhere on line. Best of luck to you.

@Julius Morganson most every home hear is built with block construction. You may run into problems with contractors and the labor not knowing how to install the panels, or charging you more because there are fewer companies for you to choose from. I have spoken to builders that can still do about $120sqft on your lot. Obviously there are many variables like impact fees, permitting, soil/environmental fees, and well/septic if needed all above that $120, but that should give you a start. Part of that will depend on where the lots are too..cost of transport/fuel to the site could impact that to some degree (Think places like Poinciana vs Deland) both fairly close to Orlando, but Poinciana is far less convenient.

Hope this helps. Good luck!

@Sherif Taher The general thinking is usually 'buy as big as you can afford'. With the larger homes, you have the flexibility to rent it out as a 'smaller' (4,5,6) bedroom home during non peak times and capitalize on the lack of supply during the rest of the year and keep it full and get great nightly rates. With a smaller unit, you are limited to the number of guests and therefore will likely only rent to single families rather than larger groups. 

Larger homes by nature will house more people and likely have more wear and tear on furnishings too, so budgeting for that is something to consider, also, larger homes have 2 a/c units, 2 water heaters, washer/dryer get a lot more use, and other things to consider. The pros outweigh the cons, but you should look at the whole picture.

It is also easier to make a larger home stand out to potential guests, more games, themed rooms, garages, pool areas. The more you can separate yourself from the competition, the better you will do

@Michael Voss Welcome to BP! what is it you are looking to accomplish? Find an investor friendly brokerage to hang your license, or to get out and network with other investors? You can do both, but what is more important and what are your goals from doing that, will you be doing real estate full time?

Let us know how to best get you set up! Good luck