Help needed with my first multi family in Daytona Beach

Help needed with my first multi family in Daytona Beach

Investor · Orlando, FL · Member since 2016 · 162 posts · 125 votes

I am in contract on a 58 unit muti-family in daytona beach. This is my first multi in that area and also with one bedrooms. 40 are 1 bedrooms and the rest are 2 bedrooms. I'm concerned if im going to be able to fill all the 1 bedrooms with quality tenants. Has anyone had experience in either multi family in Daytona or with 1 bedrooms, how are the tenants, is it hard to fill, do they turn over a lot? It is not close to any Universities and there are a lot of multi family buildings in the area which also makes me nervous. the tenants that are currently living there I believe most of them will have to go because they are not qualified. The building is in bad shape and has not been well maintained im just not sure once I fix it up and turn it around that I will be able to get decent tenants. I have looked at other properties close by and what type of tenants they have however none of them are 1 bedrooms. The complex is very tight quarters with the 1 bedrooms only being 600sqft it is almost like a motel style on the exterior, which also makes me nervous what type of tenant I will get. The rents are low right now but can go up some but nothing spectacular. I want it for long term not to flip so not sure if it is the right property.

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Real Estate Agent · Ormond Beach, FL · Member since 2017 · 215 posts · 158 votes
4y

@Scott Esmail Sounds like you aren't feeling super confident on this property. Location in Daytona is everything. STR is not yet an option for most of the area, although there are people on the city council trying to change that (for a small section of the beachside). There is a great need for lower cost housing. You may want to look at section 8 once you rehab the building. If you have consistently paying tenants that don't cause trouble, I wouldn't rule them out.

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  • Investor · New York & TN · Member since 2019 · 325 posts · 219 votes
    4y

    I went to college in Daytona (Embry-Riddle) in the early 80's. It was such a great beach town from what I remember. Thoroughly enjoyed my college/experiences there. I've been back a few times since then (just passing thru to see it) and I don't know if it changed, or if I was seeing it with mature eyes. Regardless, it just didn't seem as nice as it was in the 80's.

    Having said this, I would guess, especially with the way real estate markets are rising, it can only get better going forward. It will be a challenge to deal with this many units (especially the 1BR's). You'll need to be creative. 

    One thought I have is: try to remove a handful of the problem tenants. Replace them with good tenants which you'll need to lure with incentives (low rent, a few free months etc). Once the property is stabilized, it'll be a lot easier to continue the process of replacing bad tenants with good ones.

    Good luck!

  • Real Estate Agent · Central Florida, Orlando and surrounding · Member since 2021 · 9 posts · 6 votes
    4y

    Hi @Scott Esmail I am currently investing in Daytona Beach. I have to say it really depends on your location. It changes sometimes street by street. Are you on beach side? I know that STR is not allowed in most areas but worth checking out. What zip code are you in? I am happy to give you more insight if you want to reach out. And as I am reading this I think I sold you a property a few years ago LOL! Happy to help - let me know.

  • Member since 2020 · 3 posts · 0 votes
    4y

    Scott, I hope you are doing well! I live in metro Orlando and currently invest in south Georgia. I want to begin moving toward multi-family. Do you know of any real estate meet-ups in the Orlando area, specifically focused on multi-family? 

  • Real Estate Agent · Ormond Beach, FL · Member since 2017 · 215 posts · 158 votes
    4y

    @Scott Esmail Sounds like you aren't feeling super confident on this property. Location in Daytona is everything. STR is not yet an option for most of the area, although there are people on the city council trying to change that (for a small section of the beachside). There is a great need for lower cost housing. You may want to look at section 8 once you rehab the building. If you have consistently paying tenants that don't cause trouble, I wouldn't rule them out.

  • Member since 2022 · 6 posts · 2 votes
    4y
    Quote from @Jason Whitfield:

    Scott, I hope you are doing well! I live in metro Orlando and currently invest in south Georgia. I want to begin moving toward multi-family. Do you know of any real estate meet-ups in the Orlando area, specifically focused on multi-family? 


     CFRI has great folks and there are specific meetups for multi family if you are a member. 

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