All Forum Posts by: Matt Nico

Hi Alice,

I know this is an old thread, but would you mind giving an update on how your STR homes are doing in the Davenport / Kissimmee area in terms of pricing and especially occupancy? I am renovating a home right now and I think I am finally going to take the plunge and do this one as a short term rental rather than long term like I have been doing.

I'm doing a lot of research on occupancy and what my rate should be and I think it is going to work out incredibly well. I'm looking at somewhere between $130-$150 per night for a 5 bed home with a pool and hot tub. I'm plugging in 75% occupancy which seems conservative. Your thoughts?

-Matt

Cooper,

Sure I can give you an example..... Last home I bought was a few weeks ago at the end of February. This is a single family home with 4 beds and 3 baths, about 2,000 sf. I am renovating the entire home and putting in about $15,000 to it. Its value should increase about $30,000 as a result. I am also building a 5th bedroom into the home to create a 5 bed, 3 bath. With PITI and HOA I am all in for about $1,850. This is on a special seller financing deal. Once I refi into a 30 year fixed it will go down to about $1,600 mortgage payment. But for now I'm using $1,850.

Once finished I have 3 options:

1. Long term rental. I think I can get about $2,300 conservatively. That's +$450 every month.

2. Rent by the room. I can get about $2,600 conservatively. That's +$750 every month.

3. I can Airbnb. I can get about $3,200 conservatively during the summer (not sure in the fall), then re-evaluate in the slow season. Also I would clean myself so + the cleaning fee but - utilities. I'd be looking at about +$800ish + cleaning fees every month.

Hope this helps you out. Look at property rentals every which way you can and pick the best one you think is right.

-Matt

Cooper,

I completely disagree with your viewpoint. I have been doing great with every one of my SF purchases. I bought 1 in the middle of Covid and just bought another 2 weeks ago and am buying another one in May. The numbers look great even at the higher purchase prices. 

There must be some mistake you are making in your process. You must not be analyzing correctly or you are not rehabbing your properties correctly to achieve a higher rent. I would break down your strategy to the nuts and bolts and rebuild. Something in your area should work for what you want to do.

-Matt

 Cooper, I'd look in the single family home market and try to pick something up there. I'm surprised you even have 1 multi-family house in Central Florida. They are super rare to come by for the right price in my area near Disney. 

I have been doing the SFH purchases for some time now. I just bought one in Kissimmee that I am deciding between either a long term rental where it will cash flow $800-$1,000ish or turning it into an Airbnb and testing those waters out. I'd start there.

Happy Housing,

Matt

 If you are wanting to do a short term rental Jessica, yes a pool is a must. Almost every single airbnb in the area has a pool. Does a pool worry you?

The boundaries are wherever you set them within reason. Agents work for you. Just set expectations clearly upfront and you should be fine.

-Matt

@Jeff Terry

I just became an agent last year in addition to purchasing investments. When i have a client i put together the list of homes to show based on what the client wants/needs. These homes go onto a spreadsheet where i give the client a rough estimate of the mortgage payment, the homes condition, and my estimate of what a reasonable rent price would be.

If the agent doesn’t know anything about investing and wont even give you rough estimates, please move on to an agent who knows better. In one of your initial conversations with them, tell them what you want him/her to do and as long as its reasonable you are not asking for a lot.

Happy Housing,

-Matt

@Tim Lounibos

If you are planning on holding this investment long term, leveraging makes the most sense. Reason being that interest rates are cheap. When money is close to “free”, take it. Dont worry about a price adjustment for a long-term investment. Just my thoughts.

Happy Housing,

Matt

@Adam Whitney

I honestly have never broken jobs down by square feet in general. I do it by line item macro and micro. So macro would be bathroom # 1: $7,500. Then zero in on that for supplies + labor. Just my 2 cents. Obviously not perfect but i get close.

 Brandt,

Can you send me those contacts? I am getting a HELOC in Florida. Quorum lends in most states but the have some interesting criteria. I'm scheduled to close next Friday on it.

-Matt