All Forum Posts by: Traci de Wid

Hi Mike,

As a Realtor and with a second biz doing project and property management in the Oviedo (and Seminole-East Orlando) area, I can tell you what you ask is doable - it just depends on your personal finances. I helped a couple who moved here from RI with a similar situation over a year ago (they found me through BP and we are currently working on property #2 for them).  If you own a home and need to sell before you can move that is one thing.  That said, if you can come up with the 20-25% without selling - and you can lean on your income there (last 2 tax returns) right now while you are identifying and purchasing the property, then you can qualify for a loan to purchase a second/vacation home (as they did).  Their initial "intent" was to use the FL home as a seasonal home and rent it the rest of the year.  But as things later unfolded, they ended up selling their RI home after the purchase of the home here, and they moved down (and this was in the middle of covid!).   A few months after we finished the reno (about 7 mo total), they went back to the same lender and decided to refi their home as a primary.  

I'm not a financial advisor nor a mortgage lender and I know this is a little like roulette with the interest rates moving as they are.  But I do work closely with a few lenders and I'm happy to share their info so you can explore this in greater detail if you want to reach out to me.  

Jon, I would definitely hold on to it. I'm a RE agent and "boutique" property manger in Seminole County and I manage many properties for investors in the area (East Orlando and Seminole County to include Oviedo). My repeat investors are continuing to buy in the area when we're able to locate properties where the numbers work. Rents in the greater Orlando area are up 30% in the past year and there is no sign of slowing. The lack of inventory in the real estate space and the fierce competition here - coupled with what's happening in the economy - is creating scarcity and demand for rentals. As the economy in Central Florida cannot keep up with housing demands, there is no reason to believe this balance will change in the near future. The issue I'm seeing with many do-it-yourself owners is they are not allowing the "rent cork" to float with inflation, they don't understand the nuances of the local market, and they generally run from "value adding" to their properties that would allow them to collect above market rents (this is my specialty). I find value add pays both from an appreciation and cashflow standpoint so I highly recommend investing in your property prior to pulling any cash. Done smartly, it doesn't have to cost you a lot but it will allow you to net higher rental income, rent it out crazy fast, and push up your property's value to allow you to pull out more cash for additional investments. The model I'm suggesting doesn't work in all areas -- it is a local strategy which can be applied to very specific areas, with target clientele, target neighborhoods, and specific growth trajectories for the surrounding areas, amongst other considerations. I don't know your personal situation but it sounds like you just might be able to grab a HELOC and move things along with your investments when the time is "right" for you. And hey, consider yourself one smart cookie to have gotten into the one you currently own when you did - you should be able to make the rents work just fine. : )

Hi Valentina, In case you might be interested...I'm in the process of standing up a branch of my brokerage here in the Orlando area and we are working to build a team in Q1 2022.  I also have a boutique property management and a project management business which I built from scratch.  In terms of RE sales, I do traditional real estate and I have an arm that works with investors (handled very differently - providing them a "one stop shop" for all things real estate.  

I left a big name brokerage after several years of paying fees and only getting limited support - everyone wants to say they offer training (and they do ) but few actually help you get to that next level.  (I did sell 25 homes in my first full year, so please don't think I left because of production.)  For the bigger names though, training dollars (many charge you for the "next level" training) and churning new agents makes up a good chunk of their profits. When you're new, you need tools, a work family, mentors (who know what they're doing - not people who just coach) and accountability.  

If you're interested, I'd be happy to talk with you about any aspect of your question. 

Eric, Your situation and goals sound similar to many of my investor clients. Yes, getting that first deal is important to building confidence and your portfolio - so bravo for moving to take that step! I'd be happy to talk with you more offline.  But whatever you do moving forward, just please be aware that it can be a particularly difficult time to find and work with contractors right now (more than usual); given the high demand for their services, they are asking stupid amounts...because they have enough work they don't mind turning down jobs or not getting back to you. I saw you mentioned that a mainly cosmetic reno would probably be enough for your first and I couldn't agree more if you're going it alone.  

As a second warning to new investors who might be reading this....there are a lot of inflated numbers in the "off-market" emails that are circulating so please do not trust their estimates, "comps" or business practices.  Do your own research or have an agent who's working on your behalf pull comps for you. You can still successfully buy off-market properties but get a professional to protect your interests.  {Please remember that some of the folks selling off market do not have a real estate license so they don't answer to the Florida DPBR - business ethics is optional.]

Hi Eric!  Totally appreciate where you're coming from with your question.  A big part of your answer will depend on how much you want/can spend, what type of tenants you want in your rentals, and what type of landlord you want to be.  Obviously folks who want (or need) to take on the whole thing to save money will come at this quite differently than someone who is working full time while trying to break into the investor game.  Neither tactic is wrong or right - it just depends how you want to set things up for yourself.

The first thing I ask my clients is "where do you want to end up?"  Meaning, who do you want as your tenants?  And, Where would you ideally like to own rental property?  Honestly the rental game is a numbers game and you can pretty much be anywhere as long as the numbers work so I've found that adding these other criteria do help.  Some of my investors will only buy something they would be okay to live in themselves; others are thinking one of their kids might live in the house when they move out for college; others take a sense of pride with owning and want to feel proud to tell others that this particular home is one of theirs; some just want to make sound investment - some a quick buck... Shaping your portfolio in your own mind - and identifying your purpose for doing it - before you get going will help you a lot.

I will say that being in an appreciating area with top schools has its benefits and renters will not be going away anytime in the near future.  I specialize in these areas and help investors renovate with the goal of achieving above market rents.  My investor clients tend to focus on East Orlando and Seminole County and yes they are still buying even in some of the "boom" areas. We closed on one in Oviedo just a few weeks ago. Why?  Well rents have appreciated right along with prices so the numbers still work!  I do have a few investors aimed at shorter term rental opportunities in South Orlando (closer to the Parks). But no matter where they are looking, we offer the full array of services to our clients not only do we provide property assessments, we also give renovation costs and rental estimates so they fully understand what they are signing up for before taking a plunge.

Regardless of how, or what, or where you do it, the numbers just need to work and ultimately you need to be good with your investment decisions.  

The reality of the market in East Orlando and Oviedo/Winter Park is pretty insane in the under $300k category; I love it because my problem solving and strategy skills are in full play.  But this is a market I regularly work for investors and clients alike. What is the reality?  I placed an offer on an East Orlando home (32825) on Friday evening (2/19/21) for an investor who is using conventional financing ("approved" not pre-approved), 30% down, $8k over ask and decent terms.  Unfortunately, he made some choices that were not in line with my recommendations - he had cash but wanted to go the financing route and made some other choices that suited his situation.  In a normal market, his offer would have done the trick, but we are far from "normal".  He did not get the house.  There were 71 offers after 3 days (the Seller had to place a cut-off), 4 cash over ask - the winner had NO contingencies and a 14-day close.  And no, this is not an uncommon scenario and no, the house was not a "golden gem" - it was a decent rental in an okay neighborhood. 

Now the other side...I have Buyer clients I've been showing homes in East Orlando and they need somewhere to live. We placed their home under contract last week and while we have some time to shop, they can't spend much over $200k.  We have been looking everywhere and keep getting beat out by investors walking in with cash.  It's great when I'm working with you guys but when I have a traditional client, I must to figure out how to make this work!

What I am trying to say is if you don't want to enter the dog-eat-dog competition, and you don't have a hard-charging Realtor to help you devise really strong strategies for winning the sale and still protect you from getting into a lemon, then yes, going toward Kissimmee and the theme parks would be a good idea. It stands to reason there are more opportunities there given we have had less visitors over the last year+ and layoff have impacted theme park workers and their families. While you may not have crazy strong rents at the moment, the parks will return and rentals are predicted to go up in 2022 and beyond due to market forces. Waiting until the market it hot is not always the best strategy. I would definitely take a closer look in these areas!

There are several issues with trying to "rent by the room" in the Oviedo and UCF area. So if you're considering, please please get the HOA docs ahead of time and read carefully! Here are a few arguments for NOT renting a property out by the room.

1) Control & Management.  If you are not going to live in the property yourself and manage things, you run the risk of no one taking responsibility for upkeep and cleanliness.  Students rarely have time -- or worse -- just see a mess as someone else's problem or something they will get to later so dishes in the sink, bugs, cleaning after their pets, etc, are just a few of the problem areas.  And then you have the issue of personalities of the other renters -- will they get along with whomever takes the next room?  

2) HOA regs. Most homes in Oviedo and around the UCF campus have strict HOA regulations that only permit the owner to rent to a family OR people who are related (there must be at least two). It is written in the bylaws and these do get enforced! In one neighborhood where I manage property (right behind UCF), the HOA issues warnings for every nit pinking thing - trash can or personal items being left in front of the garage, wetsuit hanging over the fence to dry, weeds growing in the front bed; the fine for not correcting it immediately is $1000. Why? Students are notorious for not taking the trash cans in on trash day as well as for allowing the curb appeal to wane. Which brings me to the real way they can tell your property is not rented by a "family" (even if you have spectacular renters)....

3) Cars. The HOAs and the neighbors understand what is going on by the number of cars parked in the driveway and on the street. When you're renting to students, its not uncommon for them to have guests spend the night so you can add even more cars to the mix. Oveido neighborhoods are predominantly families, so don't think the neighbors won't notice when a student (or several) barrel down the street and their kids are playing outside. Anyway, hiding cars is a real thing if you have an HOA that goes out of their way to prevent student rentals.

Renting by the room is not the get rich quick scheme people try to make it out to be. It has consequences that most of the time do not outweigh doing a regular rental (unless of course you are living there).  I'm not suggesting that you avoid students but you will have to be smart about it.  I highly suggest even in a roommate situation, that one renter becomes the central point of contact and accountable to you for what happens in the house.   

And FYI, Oviedo is not ripe with "fixer uppers" - it's actually the opposite.  Happy to answer any more questions you may have - feel free to message me.

Hi Robert, I'm a Realtor who focuses on "value-add" in Seminole and Orange counties - predominantly focusing on east and north east Orange County and all of Seminole County.  Some call me a one-stop-shop for investors or the savvy home buyer who wants the numbers & analysis upfront and doesn't necessarily have the time to manage their investment.  Essentially I find and negotiate deals; have the ability to project manage the reno bringing in my team; then find a renter and property manage -- or sell the property.  I work with first-time (and have repeat) investors.

If I can assist with simply providing you info, not a problem. Happy to set up a call where we can discuss the local market.  My priority is building relationships, not just complete one-time transactions.  I prefer my clients see me as their partner because ultimately, trust, our personality match, and you getting to your final goal is what is most important.  Feel free to message me and we can start a conversation.

Hi Susanthi, I'm a Realtor and work with investors in the greater East/Northeast Orlando-Seminole county area. I also live in Oviedo. Oviedo on the Park is not a community I recommend to investors one main reason - the numbers don't line up!! Other related reasons include: 1) current mortgage rates mean most buyers are able to purchase a reasonable 3/2 SFH or nice townhome in Oviedo for the same (or less) money than the rate you would need to charge to make the numbers work; 2) the community is surrounded by luxury apartment rentals; and 3) not convinced there is enough of a 'pull' factor - the community is still relatively new.

If you (or someone you know) intended to purchase and live in it and then, in lieu of selling, try to rent the unit, well that would be a different story.  I don't mean to be too negative and of course, if you somehow could make the numbers work...well, this game is all about the numbers!  Don't hesitate to reach out to me if I can provide any additional info. 

@Justin Allison I'm a realtor in the greater Orlando area - mainly working the area north of downtown Orlando up through northeast quadrant (UCF area, Oviedo, Winter Park, Winter Springs, Lake Mary, Sanford).  About half of my business is working with investors to locate property to fix and rent (only a few looking for flips).  "Deals" are not super prevalent right now in the $175-250k range (in the areas mentioned above) as these have been a hot commodity for the last 3-5 months with multiple offer situations -- especially on move-in ready properties but yes, even on those needing work.  Generally speaking, our local market is just beginning to show signs of evening out in this price point (partly due to conservative appraisals) as we head into the fall but unfortunately, the inventory is slowing as well.  I mention 'conservative appraisals' because most everything "off market" being sent my way is highly overvalued with margins no where near what they're suggesting.  Things are popping up but not being in too much of a hurry will pay off.  Happy to share more insights and assist - please feel free to reach out!