All Forum Posts by: Shawn McCormick

@Samuel Leatherwood. Sounds like you did some homework, good for you. Appraisers are so busy and likely wouldn't do anything as it would be too subjective if its not built yet. They go off of factual, actual data and even though much is opinion based, they still would want to see it and then compare to other similar. You might get a desktop appraisal done to include finished properties but still wouldn't hold up if you used it to show actual value.

Hope this helps. Keep us updated please.

@Sam Spade I would reach out to your lender and CPA if you have them to get actual advice from qualified people with your interest at heart. Doing a refi is not very complicated, just submitting docs and getting an appraisal. I would caution doing that unless you plan on staying in the house longer than 5-7 years or more. 

If you can get the property classified as a vacation home, you will only need 10% plus closing costs. An investment property would be 20%, so that might make a difference. 

For properties that are $150 are likely condos or townhomes and will have pretty high HOA fees, so make sure that you are including that in your calculations. If you are trying to Airbnb, you can't be in Orange County (you mentioned Orlando), so be careful where you are looking. I would also research rates on returns for properties that you are interested in. There is a lot of competition and that means your nightly rates will be lower and many people may turn to a hotel room vs a airbnb that is small or doesn't have good amenities in the community for a similar price. It is much harder to make a small condo or townhome stand out against all of the other ones. JMO...

Good luck and reach out if I can help further.

@Louis Zameryka You've gotten some good advice here. I have two airbnb units in Clermont, not focused on theme park traffic and I live here, so self manage. But I agree with @Cliff H., you should always run your numbers using a PM, regardless of if you want/intend to self manage. Someday, it will likely catch up to you that it is a job doing it and life will get in the way and you will 'have' to hire a PM to schedule, market, clean, theme, book, hire maintenance etc etc.

If you sell it, the next investor that buys it will want to see your books and if it doesn't make money, it isn't worth as much as one that runs efficiently with a PM in place. JMO...

@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?