All Forum Posts by: Shawn McCormick

@Barbara Pinto, Mount Dora is very small, but does have a several block area near downtown that wouldn't be as attractive or command rents as the rest of the city.  Single family homes do great with snowbirds and others that love the area for what it offers, most of the multi family I see there is either in a bad area or very small units or both. I wouldn't use rentometer or other similar sources, call a couple local RE offices, there are about a dozen located in downtown Mount Dora to get a actual scoop on what rents would be. Good luck. 

@Account Closed I certainly don't know your market and contractors in most areas are handpicking jobs due to demand, but those prices are crazy to me! Many items would need more info on type/style of item, the comps in the neighborhood if they support those finishes, type of foundation (for flooring, plumbing etc)

But for 1000sqft, the demo can't possibly be 5,700 unless you are literally going to studs and moving walls. That is best suited for day laborers etc, pay by the job not the hour and rent your own dumpsters for $350-500 each, bet it could be done for $2k total. Flooring..is it glue down LVP or click..what foundation type. I pay about $1.50-1.75/ft installed for glue down, but we are on slabs here. You are paying $7.00sqft! Painting should be about $1.50-2.00sqft too. so even if that includes baseboards, doors, ceilings, texture, and paint for 1000sqft...$2500 seems more than enough. A/C, I just put in a 2.5 ton Trane for $3900, with only 1000sqft you should be able to get away for much cheaper. Countertops and backsplash seems cheap to me, but depends on sqft and material..are you doing granite/quartz..good price if that includes bathroom too. If that is laminate tops, than its too much. Full plumbing..what is that entail..are you on slab, crawl or basement. Again I can get a full repipe on slab here for right about $5k, on a 3 bed, 2 bath. Bathtubs are about $200-300, custom tile..maybe another 700-1000. so that seems wayyy off too. Cabinetry seems okay, but depends on all wood..soft close..crown molding, how many boxes...Electric seems high for that small of a place, that is more for a 3/2. Windows should be $300-400 each installed, maybe more since supply shortage and demand, but how many windows do you have in a 2/1?, that price seems ridiculous.

Like I said, I don't know your market, but seems like they are taking advantage of you or your market is just very expensive. Either way, get a full scope of work, do draws and get a lien release when you're done. Good luck!! Keep us updated.

@Patrick Hamlin I lived in Cleveland for 10+ years and now in Orlando for over 20, so I know both pretty well also and agree with your cautious approve with your capital. I own properties in Ohio and Florida, a couple I have yet to see. I am more comfortable with this since I've done it a few times, but by no means immune to mistakes or misjudgment that can/have cost me money.

Getting a good team on the ground is important and I'm sure you'll get plenty of responses with the 'big 4'  etc, but, yes depends on your risk. I will only invest in certain neighborhoods that meet my criteria so lessens the risk. Property management is another hot button here, so you'll get differing opinions on that too, but would suggest that you at least run your numbers with a PM in place just in case you ever want/need to switch to one, the cost is already factored in.

One thing I do is hold my properties in land trusts so my identity to the tenant is now known. So if you MUST visit the property, you can say that you are just someone the works for the trust doing an inspection etc. I typically don't advise you get to know the tenants for various reasons...but that's me.

Good luck in wherever you start!

@Michael Johnson I'm partial to Orlando for a host of reasons beside living here. We have a central location to the entire state, an amazing International airport, cruise ports, theme parks (of course), great growth, easy access to east and west beaches, every kid in the world knows where Disney is AND wants to go there. Orlando was literally built for tourism and already has specifically zoned areas and great resort communities with proven track records without the fear or local authorities or an HOA to take it away.

Happy to dive deeper into this with more specifics if needed, but hope this has some value! Happy shopping.

@Eric Starks You've got some pretty good advice going here. I would add that real estate is hyper local, so I would stick close to home for your first deal or two. Comps can change from one side of the street to the other as school districts, crime stats and other factors can greatly affect property and perceived values. So I wouldn't necessarily stick to an entire zip code, let alone a county (unless doing short term). Demographics should also be considered as some areas due to economic or other reasons tend to have more turnover and that cost you money each time that happens. Ask yourself would you take a little less than 1% for a tenant that is more likely to treat my home better and stay multiple years, or get a tiny more cash flow, but have to do evictions, repaint, carpet every year.

Hope this helps. I'm sure there is much more to add here as you dive deeper into your journey.

@Red Johnston Welcome! I'm a Realtor® locally here too and really get a lot out of BP. I would have advised to join CFRI, but Sandra beat me to it. She is a past president and her, along with many, many others have helped me gain great knowledge about investing. So glad to hear you joined!

Happy to have a conversation with you sometime if you would like to spitball some ideas you have or need direction on local resources. Good luck!

@Jonathan Feliciano @Juan Alzate @Mora Clark  the investors that i've been working with lately have realized that they can't focus on one zip code or 'hot area'. They have to go where the deals can be found and others may have passed on or failed to find. As Tyler mentioned, you may have to go well outside Orlando to find the rules of thumb if that is your only requirement. Appreciation has been significant in this market for several years. 

IMO, the cost of waiting will further price you out of this market, either prices will continue to climb or interested rates will..or both. If the deals on MLS are your only option due to needing financing, find ones that have been on the market a few weeks or more and negotiate. You can do this upfront or after inspections and show that the home needs work and then renegotiate price or ask for concessions. This works more often than you think, even in a sellers market. Good Luck!

Hey @Ryan Ee and @Eric Starks Welcome, glad you found BP. Quite a few fellow Orlando investors here. Look on FB and MeetUp.com for locals that have various groups to network in all over Orlando. Good luck to both of you, if I can be a resource, happy to help.

Hi @John Menton looks like you have some choices and good advice. If you still need help with lenders, property manager or an agent please let me know. I would love to give you opinions on which communities might be the best fit depending a few things. Good Luck!

@Matthew Edge Orlando is a big market and is still growing by very big players, not people buying a cabin or unique property for the view. These are primarily cookie cutter houses that feed the theme parks, beaches etc. So, yes, the theming has to be above average to stand out and a bigger house (7-9 ) beds is more ideal as there are less of them and they can be themed out to be special (a condo and townhome can't really do that). People aren't coming for the mountain views or to be near nature. This is primarily to create memories for the kids and the house is just an extension of the theme parks..guests want to have amenities and games even outside of the parks. There are about 6-8 prime communities that offer the best amenities and homes that have the size host large families/groups.

Hope this helps.