First House Hack in Edgewater – Need Local Advice

[Kovacs Dorottya]

Hi everyone,

I’d love to get some input from more experienced investors who know the Florida market (especially Volusia County / Edgewater area).

We’re under contract on a single-family home with a separate studio apartment that we plan to live in as our primary while renting out the studio for extra income. It’s our first purchase, so we’re still learning the ropes. The property was recently flipped (built in 1977), and while it looks nice cosmetically, we’re waiting on inspection and permit info to confirm what was actually updated.

Major updates already done:

Roof replaced in 2021

Solar panels on roof in 2024

HVAC 1–2 years old

Water heater 4 years old

Vinyl fence 2 years old

Our challenges so far: Insurance is insanely expensive, cheapest quote we’ve seen is $3,700/year, and that doesn’t even include the landlord endorsement. We’re still digging into permits and want to make sure the flip was done right.

Our main goal: We want to finally get out of renting, start building equity, and learn how to manage a rental. Long-term, we’d like to get serious about real estate investing, but this is our first step and we have to start somewhere.

Questions for those familiar with this area:

How is rental demand for small studios/in-law suites in Edgewater?

Are there any local hidden risks we should watch out for (insurance, taxes, tenant laws, etc.)?

For a first-time house hack, would you run the rental side through an LLC, or keep it simple for now?

Anyone here bought flips in this market, what hidden issues came up for you?

We’d really appreciate any local insight or lessons learned 🙏