All Forum Posts by: Shawn McCormick

@Michael JohnsonI have about a dozen BPr's that own STR's in Orlando, most of them are larger homes (7-9 beds) but a few condo and townhome as well. Type of home and community make a big difference in terms of revenue, reputation, rates etc. Some of the other factors would be if you are self-managing, how well the home is decorated/themed. If you are using a PM, how aggressive they work your calendar and are connected to tour operators, travel agents, other countries travel seasons etc.

As Tyler said, if you are not looking at a purchase in the Four Corners area to capture the theme park goers, you will have a tough time of it in Orange County. There are other variables to consider too. I'd be happy to see if any of my owners would be willing to speak with you. I would also consider interviewing a few PM's for numbers and comparison of expectations, services and other insight an owner may not know or deal with directly. 

Hope this helps. Good luck.

Hey @Sean Beyrouthy

In general, a local lender is always preferred and lends credibility that the listing agent can call and speak with someone. Big banks are not good at doing any type of investment loans, get a lender that understands these. Some lenders have programs specifically for STR and others don't want anything to do with them due to risk.

You may be eligible to do a second home loan and only do 10% down or stick with conventional to avoid PMI etc. I could share a few of my lenders to you if you still have a need.

Hey @Matthew Edge what part of Ohio, I picked up a couple rentals in Toledo this year and looking for more.

As far as Kissimmee, I've sold over a dozen STR's there this year and all of my clients are doing well. The ones that purchased earlier in the year got great deals, but the ones that closed at higher prices are still making it work.

Disney is celebrating its 50 year anniversary, new sections of the theme parks are opening and International travel is not even up to speed yet..so the future looks bright. I will be somewhat tough if you don't buy soon as the holiday bookings will make it difficult to transition, get inspections and closing dates to coincide with very tight windows and also the possibility of cancelling existing reservations for people that have big holiday bookings.

Depending on what type of property you are looking at will make big difference also. A condo or townhome may be easier than a larger single family like a 7-9 bedroom, but those sizes are the real money makers (IMO). Prices are holding steady as there is very little inventory. I'm not seeing 10+ offers on a single property, but if a good one comes up that is truly turnkey, they still go fast. I believe that will only get worse as International investors come back and start buying up what is left. There are only a few new construction communities building in true resort complexes and they have wait lists for months, so the demand is definitely there.

Hope this helps a little, let me know if you have any deals in Toledo!

@Joseph Goode Good questions, and I don't have much to add other than what others have already pointed out. Beach house could be harder to insure, more wear and tear weather wise(?) Age of home and capital expenses to replace roof, a/c, pool equipment, how much does sand affect wear and tear(?) Orlando has 10 great months and two okay, not sure about PCB.

Will you be using it (kids/disney?) Don't look at price per square foot, first off totally different markets and I'll assume different square foot of homes, the smaller the home, the higher the PPSF. What community is the Kissimmee house in, that will also make a difference, there are 7-8 that are top tier for returns due to amenities of the community and reputation, if it's not in one of them, you'll work harder to fill it up and get great rates.

@Gabriel Araya I would suggest speaking with a lender first. I have never had anyone do a construction to perm loan with FHA, but that doesn't mean it's not allowed, but if I had to guess it won't be. As far as build costs, materials are still experiencing a shortage and rising costs, so to quote something without plans, finishes, permits, utilities, septic/sewer, impact fees etc, I would expect very different quotes until you have all the answers. I have a client looking to build custom and was just quoted $140 from a very reputable higher end builder (not including land costs). So too many variables to really have an idea. But I would plan closer to $150 to be safe and always include a 'whoops' factor of 10-15%.

Good luck and keep us updated, would love to know how it goes.

@Wes Mccullar Happy to go over what I know in the Orlando market with you anytime. Our market was built for this and you can do very well all year. 

@Allen Motakef sounds like a great model, but seems (to me) difficult to do if you are not local. There are so many hurdles with environmental, permitting, engineering, working with city and/or county, finding a GC that you can trust with everything etc. Also, you are speculating to some degree as from start to finish could be 8-12 months from land acquisition to getting your CO, tying up your money for a long period.

A lot of Polk is zoned minimum 5 acre lots when you get in the more rural areas and Lakeland can be hit or miss in regards to the 'class' of the area. There is definitely a need and if you have the resources to put it all together, I think you would do well.

Keep me posted, I may have some good contacts for you in Lakeland.

@Jennifer Roberts and @Allen Motakef are you looking at track builders like Lennar, DR Horton, Pulte etc or from small local builders that build on lots that they purchase? If they don't even have a floor plan, I wouldn't waste my time flying out. The plans would have to be submitted and approved locally, have engineers, soil tests, water tests and much more...unless you are building with a larger builder. 

One thing I would advise is trying to get in really early in a community, phase one. The builder raises prices every few homes they sell and you will get appreciation due to that and by the time the community is finished, you have a lot of equity. I sell a fair amount of new construction and know sales reps at virtually all the builders and can likely answer any questions you might have about the process. 

One thing to be aware of is if it is regional/national builder, they use their own contracts and they are completely in favor of them should you ever want/need to back out..you will lose your escrow. If it is a small builder, you may have additional protections using the FAR/BAR contract that Realtors® use.

Hope this helps, good luck!

@Carley Wragg I have a few investor friends with STR in Sanford and the do quite well. One is literally finishing up an ADU on one of the properties because the demand is high and competition is low (everyone thinks they have to be by Disney) Fact is Sanford is a nice little town and growing as Aubrey said..right on the money. But STR in Orlando are not just for the theme parks. Funerals, grandkids, hospital visitors, traveling nurses, just visiting family, and all around people looking to stay AWAY from the parks and have something affordable will turn to you. I have other friends that do well in Eustis, Deland, Leesburg and other outlyers for the same reasons. Provide a nice product at an affordable price and they will seek you out.

I would caution zoning laws can/will eventually catch up with you, but then you can always go long term, just run numbers for both and enjoy the ride while you can. I have several property managers that cover that area as well as some co-hosts if that would be a better fit. Good luck!

@James Krell I would reach out to Joe Seagle with PCS law and title. He is extremely well versed in what we do. He has contract packages for wholesalers, seller financing and traditional, runs a title company and a land trust company too.