All Forum Posts by: Shawn McCormick

Hi @Matt Brazis. Money is easier to come by these days and no offense, but with 55k, you will likely be lending on a flip and only for the rehab portion. This means that you will probably be in Second position and won't have much protection. Just a thought

Hi @Jon H. IMO, there are pros and cons to both, of which others have already mentioned. Some PM companies will set up websites and landing pages for your properties and that will help with your marketing. I would be willing to bet that most anything that has to do with Disney/Universal will be hard to find a unique and memorable name that don't already have tags and ad spend that may put you so far down in the searches/algorithms that it may not be worth it.

The fact that you mentioned these will be condos makes it even more difficult to brand and stand out, there is much more competition in that space as the units are really tough to make special/unique from all of the others. You are competing with other condos, townhomes and even hotels at that point.

I also don't necessarily think that travelers are looking to connect with hosts if they are traveling here or the parks, most owners of these live out of the area and will never meet the guests and there is no expectation of that. If you were in other areas of Orlando and they were coming in for a funeral, sporting event, to see family, go to the beaches..that is really where the connection is made if you get a chance to meet them.

I'm quite familiar with many of these communities, some perform much better than others and there are many factors in deciding other than purchase price. I'm happy to have a call with you if it would help. 

Good Luck!

@Shawn Green  First off...Happy St. Patricks Day to you sir!

I have clients under contract or just closed in 3 different communities and I've seen so many of these homes lately including new construction community that is going up, so I have some first hand knowledge of them. 

There are really so many variable that go into your questions. First off, IMO, for a home that size, you will get much better returns going with a larger PM. I have an awesome one that does direct to tour operators and that means more bookings, longer stays and premium rates..you won't be competing with mom and pop or self managing that really only have access to airbnb, VRBO etc. The rate is 20%, but you can use the unit yourself and book and only pay $50, rather than 20% and still get the advantage of the PM, cleaning etc. Bookings are getting much better right now (spring break, easter and more planes are flying!) 2022 is filling up well also in anticipation of everything being open.

Theming is a huge deal, it can really separate you from the crowd. Tour operators will require you have at least two themed rooms and a game room (usually garage). The 3/4 bedroom homes and townhomes can't compete with that either. I have a great contact that does the high end themes, wraps, game rooms and garage conversions, they do a fantastic job.

Let me know if I can help in any way or if you have other questions.

Hi @Gerald Lunetta. I just went under contract on a condo near Kissimmee and have clients that closed on a townhome in Windsor Hills (a short term rental community). With smaller units, there is plenty of inventory and competition, not only with similar properties, but with hotels. There are many factors to consider if you plan to do STR. Look at airdna.com for some metrics or just browse airbnb for similar properties in your area and look at the calanders and pricing. smaller units and individual owners still aren't fully booked and many are still keeping prices below market to keep them full, this will affect what you can charge too.

What amenities does your community have, what are your expenses, are you self managing (do you have the time?), the learning curve could cost you a lot of rentals and you've already missed the spring break and easter business. What is the mix of owner occupied/rentals, what is the condo's policy?

By the time you get up and running and get your review status up, you'll miss much of the spring/summer season. Although STR can seem sexy and the potential to make more than a long term rental, you also have to consider the start up costs...furnishing, linens, plateware, small appliances, washer/dryer, baby gear, decor, pictures, curtains, televisions, games, routers, professional photos etc etc.

Hope this helps a bit, not trying to talk you out of it, just food for thought.

Hi @Erika Pucciarelli you definitely picked some of the most attractive areas of Orlando. Winter Garden is growing like crazy and still has quite a bit of land, but prices continue to rise based on such high demand. Windermere has always been at a higher price point and is also very sought after (watch out for taxes there). Overall, everywhere you listed are great areas, but if your biggest criteria is schools, than you certainly have some other areas to consider.

You mentioned not wanting frequent repairs (that is something you have to build into your analysis of any property) If you don't have local contacts, a good, proactive property manager etc, perhaps you should consider new construction. You will get a brand new unit with warranties from the builder. This will reduce (not eliminate) cap-ex expenses and give you some piece of mind. 

You will have to be further from the areas you mentioned to get even a townhome under $250. Think places like Sanford, Davenport/Haines City, Leesburg, Kissimmee and some others. I have some contacts that I can reach out to to see what inventory they have and price points if you like.

Happy to have a call about the market here and see if I can help you out.

Hi @Tee H. I'm currently working with several out of state buyers in the vacation market. I just closed on one in Windsor Hills this week and making offers in Windsor Westside and Solara. There are definitely pros and cons and risks involved, but those can be mitigated to reduce if you have a great team, the right property in the right neighborhood. Some perform vastly different from others simply based on location and ability of the type of property manager you choose, type of theming/amenities offered etc. 

The market here is about to explode as soon as planes start flying and bringing people back, so it could be a very lucrative time, but it is an investment, so weigh those risks against other things you are considering. I can tell you some of the larger homes 6,7,8 bedrooms can generate 80-100k a year in revenue for a single home.

Happy to have a conversation with you about what I'm experiencing while helping people in real time. Reach out if you would like to discuss anything further. I hope this helps.

Hi @Mike Sempier. Your best first step is to join CFRI, the local affiliate to the National Real estate Investor Association. Right now they are meeting via zoom calls. When things open up again, there are about 20 meetings a month for you to attend, network, find mentors that live and invest locally etc. I have been a member since 2014 and it has done a lot for me personally.

I will actually be presenting a 'deal of the month' for our April general meeting. It is non profit and is recognized as one of the best REIA's in the country. Feel free to reach out if I can help answer some questions. I know several local mentors/coaches. Look up some FB groups in Orlando, there are several, also try Clubhouse, I have a few friends that have some rooms and do a fantastic job. Kari Lyke, Josh and Marlena Dates...lots of great resources locally.

@Sumner Rabin. Wow @Melissa Jolley and @Share Ross pretty much nailed everything there is! Florida is no secret, it has always been the dream of everyone in the mid-west and North-east to eventually get down here. Covid made many realize that living in crowded spaces may not be such a great idea, pair that with the weather they deal with and Florida just makes sense. Not to mention there are like 10,000 people a DAY turning 65!

The Orlando market has been appreciating in near or at double digits due to so much demand and so much new construction. Now with businesses forced to either comply or adjust how they deal with social distancing (think theme parks, beaches, restaurants), our climate is much easier to move outside to accommodate those types of businesses. South Florida will get more of a punch from outdoor dining as the weather there is a bit more stable. 

@Jessica Wygal I do not feel we are saturated. Yes, there is a lot of competition for vacationers. I'm seeing/hearing that bookings are really ramping up especially for later this year and already solid for 2022. My PM company rep does a great job with tour operators, youth sports leagues coming for competitions and markets aggressively to keep their units full. They have over 700 and they are all full thru April. Zero availability. So there is room and once everything 'opens up', I believe you'll be in a really good position.

@Jessica Wygal responding to your 'theme it up' question. It can easily be shown through nightly rates and overall number of bookings that units that have pools, game rooms and themed walls/rooms do much better. I just sat down with my PM that has hundreds of units and she showed me two literally identical properties in Windsor Hills. One was themed and one wasn't. The themed unit had 35% more bookings and at a higher nightly rate.

If you want to keep it simple and not spend a ton on furnture/tv's & theming expect to get less per night. This is especially true if you have larger SFR with 5-10 bedrooms.