All Forum Posts by: Shawn McCormick

@Brian Wilkins Welcome to BP.  I agree with @Doug Spence. I've seen sooooo many people wait and wait and wait and never pull the trigger. Saving for down payment is fine, but that only gets you so far. You could wholesale a couple deals and have a down payment in a few months, or find creative finance deals like subject to or seller financing. Granted, these are not easy strategies and can be difficult to find, but it will get you involved, keep you excited and move the needle forward. Life happens and I promise if you wait 2-3 years, something else will grab your attention, steal your time or take away your ability to purchase and you'll be right where you are today.

You should definitely utilize your VA benefits (Thank you for your service!!) of a Zero down loan to purchase a primary. You can get a duplex and house hack or BRRR if you are careful and patient. I'm in Orlando and would be happy to chat and try and get some focus or direction to get you moving along.

Good Luck!

Hi @Samuel Leatherwood That's a tough thing to analyze. There are several things to consider and I'll touch on a couple thing to think about. Since you are in Orange County, you'll want to consider the future use. If you sell the property down the road, will that set up appeal to the new owner...are there many other conversions in the neighborhood that would affect your property comping well? how will an appraiser value the property..as an income-producing property or just a house with a conversion with little justified value? Mother-in-law suites/Multi-generational homes are sought after in this market.

If you don't use a GC and get permits pulled and do it properly and when you go to do the "R(refinance) portion of your BRRR, they may not give enough value to it or not consider it at all.

What are you doing for plumbing, are you tying it into the main house, putting a septic? Have you costed out running enough electric to run appliances and a/c(split system?). Since this is detached, your costs to run these items may prove too much for the worth. If converting the garage, what does that do to the parking situation for you (main house) and the tenant. Is there street parking or a double driveway?

Just a couple things to think about, I'm interested to see other responses and points of view. Reach out if you'd like to talk more. Good luck.

Hi @Robin Morales It depends on what demographic you are looking to rent to. If you want strictly theme park business than there are several great STR only communities to recommend. If you want budget conscience than you can go pretty much anywhere. I have friends that have units in Sanford, Eustis, Leesburg, Longwood (all North/West of Orlando and 45-60 minutes from parks) that do very well all year. Think Bike fests, Spring break, Conventions, youth sporting tournaments and so much more. Less competition too.

Airdna is a great site to break down and analyze properties and areas. And also there are several Central Florida Facebook groups that you can join and everyone is quite open about sharing information. I have a property manager that specializes in the them park area that may be able to help you if you like.

Reach out and let me know if I can help any further.

Hi @Charles Hunter Welcome and congrats on taking the first steps. Would love to hear more about your strategy and always looking to partner on deals too. Reach out and we can connect. I'm in Clermont, but invest all over Central Florida.

Good luck!

@Frank Eversley. Emerald Plumbing does a lot of work for local investors and are great with repipes from polybutylene if that is what you are in need of. I have a master plumber that I work with, but he is semi retired and kinda picks his jobs and locations. What kind of job do you need done and location.

Hi @Carline Charlostin, Tyler is right on. Your income level will need to be high 40's at very minimum to qualify for most loans. You may need to get creative with your financing, perhaps reach out to family that would partner with you or perhaps market to owners of duplexes and find one that would be willing to seller finance or take it subject to. 

Happy to talk over some options if you like, reach out and let me know if I can help.

HI @Rebecca Naranjo Message me and I can give you some contacts. Are you looking for homes to flip or keep as rentals? 

@Mark Vivanco Lots of good advice here from the others. I am working with a few different buyers considering other communities and we are finding the same thing. Bookings are already seeing an increase in the 3/4th quarter of 2021 and 2022 looks good already. Pent up families from all over the world are eagerly awaiting to travel.

You asked about Windsor Hills, I am under contract on a townhome there now. I found many of the units to be in need of upgrades both mechanical and finishes. The single family generally more amenities and nicer finishes. But as someone pointed out, it is very competitive so your finishes, theming etc have to really stand out in the photos (everyone is shopping with their eyes). Some of the newer communities like Storey Lake have amazing, modern, amenity rich homes that Windsor Hills can't compete with, but Windsor has a great reputation and gets more bookings than many other communities with repeats and good marketing. So keep that in mind too, do you want something turn key that will keep your cap ex down or something more of a bargain that you could update, but not be marketable for awhile. 

Having the benefit of a unit that already has good traction and exposure is something to consider too. If you start with a new unit, you will have to build your ratings to get you in the agorhytm mix high enough to have your occupancy where you need it.

Hi @Troy Anderson Great question. My advice would be to talk to a real estate attorney that specializes in investments. I can recommend a couple that I personally use if you like. Some have a suite of contracts for different types of deals (wholesaling, subject-to, regular P&S etc) and also leases. I would suggest a company based in Florida that knows our laws and what works and what to avoid.

If you are not licensed, I would highly suggest learning the laws regarding practicing real estate with out one. 

Under Florida Statute 475.42(1)(a), the crime of Unlicensed Practice of Real Estate is committed when a person engages in real estate activities listed under Florida Statute 475.01(1)(a) without a real estate license for compensation. 

This could be a 3rd degree felony and fines, so you really want to be careful, work ethically and morally.

Good luck,

Shawn

Hi @Andrew Brown Great question. Condos, in my opinion, can be dangerous if you don't do your due diligence. Assessments and lawsuits are the two things that come up as red flags when looking at condos. Many condo associations tend to have legal issues that they battle and owners tend to get hit with assessments that they weren't expecting, ruining your returns. Another thing to consider is that many associations limit the number of units that can be owned by non-owner occupants. So selling could cause issues with the buyer qualifying and some communities are not available to take FHA financing which cuts out a segment of potential buyers.

Not saying that they are all bad or a bad investment, just find the right community and do some homework. Happy to have a call with you sometime, just message me and we can set something up.

Good luck,

Shawn