All Forum Posts by: Shawn McCormick

Hi @Armando Caceres Welcome to Florida! Best of luck finding good flips now, they get quite competitive and the margins keep getting thinner!

As far as groups go, there are many active investors in town and many have FB groups or meetup.com groups that meet regularly. CFRI.net is also a great place to network with locals, they have over 20 meetings a month around Central Florida (6 countie area). Reach out if I can assist with anything and good luck.

@Jake Hutch that is correct. It is a combination of Orange County and the city of Orlando. There are some areas grandfathered in and allowable, but the possibility of this changing at a whim or from pressure from outside sources isn't worth the risk, IMO.

On the other hand, the area around Disney is called Four Corners as Orange, Polk, Lake and Osceola counties meet. The other 3 do allow STR and that is where you will find the bulk of the resort communities and others that allow it. HOA's still hold more power than anyone in Florida and can change the rules if they decide. So either buy in a community that is deeded and zoned specifically for STR (Championsgate, Solara, Solterra, Storey Lake, Windsor Hills and several other large ones) or buy in a neighboring community with less amenities, but it will give you more options to go long term rental in the future and have better options when selling. You will be limited on size, occupancy rates/nightly rates and number of beds and proximity to the parks, but attract smaller families that may take better care of the property.

There are many variables to consider when buying here and depending on how you will use the property (will you and your family use it part time, who is your target audience..large families, snowbirds, vacationers from around the globe) etc will directly impact your cash flow.

@Karla Simmons Yes, this is pretty new. Insurance has been pretty predictable in the last decade or so until they started fighting back. I would say 2-3 years is right on target when rates started going crazy.

Hi @Karla Simmons  I can't speak for the entire state as each area has its own issues including Hurricanes, being in flood zone or coastal due to the damages of salt water, erosion etc. I'm in Orlando and Insurance companies are fighting back against fraud..especially in the roofing industry.

Many carriers have pulled out of Florida all together and the ones left are taking advantage. Rates have doubled in many cases from about $100 per month on average to around 200-300 depending on those factors I mentioned. If the roof has less than 5 years life expectancy, you'll be lucky to even get coverage. If they do cover you, they bind it on a usable life payout, rather than replacement value.

I don't know how this fares with other areas, but with fires out West, hurricanes affecting much of the South (and now the North East as well !!), historic flooding almost everywhere, I don't see this getting any better. If you own here, I can recommend a couple of companies if you like.

@Daniella Lamis I'm partial to Orlando for many obvious reasons (year round great climate, huge area growth, #1 vacation destination worldwide, theme parks, close to beaches, awesome airport/transporation, close to several cruise ports etc...) there are variable that you will need to understand to make the most of your cash flow, but we've got it all. 

@Michael Mabrouk welcome to the forums. I won't give my opinion on condos as that has pretty well been covered. Our median price for single family is now at about $320,000, so depending on your budget, getting something new and/or updated will come at a price. Townhomes seem like a good fit for you, maybe look into buying new and having it appreciate (at a slower pace than SF) for you. You would have the piece of mind of buying new with warranties (even new homes have issues). But the big ticket cap expenses will not be a worry and the prices are slightly lower on towns especially in the outlying areas. If you can get in early on in a new townhome development, the builder will force your appreciation and you should walk into equity by the time you move here.

That's just one point of view and you'll have other options if you choose. I have some great lenders if you want to have a conversation about what you'll need to get you on the path. Good Luck

@Dominic Taylor congrats on posting and welcome to Orlando. There are a ton of meet up groups and we have an excellent REIA here to help further your local knowledge and network with people actually doing deals. Hard money is one route if you don't think you could get financed, but there is an incredible amount of private money out there too. If the deal makes sense, the money will come, but you make your money when you buy.

The market here is very competitive for a number of reasons, so you have to be prepared for that. With property values rising in double digits every year here, the longer you wait the more you will pay, but our economy, jobs and reputation are all growing so the future is still bright for us here. Let me know if you need pointed in the direction of good areas and good people to help get started. Good luck!

Hi @Alexander Coventry welcome to the Florida market. There are a lot of variables to consider when choosing the property type and location. Happy to have a conversation to provide you with some insight from my experiences.

@Meeky Hwang There are several communities that would work well for what you are trying to do, I would caution on some of them as the HOA could ultimately rule against doing STR.

Depending on your priority..STR or LTR, some communities will just perform better based on proximity to Disney, number of beds, theming and community amenities that are offered to the guests for STR. Long term, those criteria won't be as important. Many STR owners switch to long term when the Pandemic first started out of fear and are now stuck with long term tenants and missing out on all the vacation demand. Hope this helps, message me if I can answer more specific questions. Good Luck!

Hi @Fabian G. Try Colleen Pacheco with Secured Insurance 407-725-3413. She really understands all aspects of investment homes, how we hold title them and hold them in LLC's or Trusts etc.