All Forum Posts by: Shawn McCormick

@Alicia Falls I'd love to talk to you about the property and give you my thoughts. This doesn't sound like it's in one of the high-performing resort-style communities, so I would be a little cautious. Don't be a motivated buyer!

I specialize in STR near Disney and can provide you with some valuable insights that will prove helpful. If you want to PM me the address so I can take a look at it, then we can set up a call if you like.

Best of luck!

You are getting $3,000 a month on a $300k property??

couple of questions

1. are the taxes correct, will they go up after purchase/reassessment?

2. Closing cost of only 1%. I'm guessing the lender will require 6 months of insurance and taxes up front at closing for an investment property which will drive the closing costs up considerably. 

3. What repairs are you doing? why aren't they adding more value. The way you have it, looks like only dollar for dollar?

@Christian Orellana any major metro in Florida is going to present difficulties in cash flow for the first few years. I analyze properties for investors all day and anything decent is tough. Our insurance 'crisis' is real, but on the mend. 8 new carriers were approved last week, but until that settles down and we see where interest rates go this summer, I would be conservative with your numbers. 

I would recommend looking inland and stay ahead of the curve, maybe areas like Lakeland that has really gained traction in the last couple of years, much more affordable and still lots of land (not landlocked by an ocean...) The competition for affordable cash-flowing investment homes is fierce, everyone wants the same thing and there just isn't enough of them that make sense. You will (should) however experience appreciation that is better than most states, which is often overlooked by investors as bonus money. If you can depreciate the property while it is appreciating in value, your returns could be any cash flow you might get in the first few years. Just something to consider. 

I'd be happy to talk more if you want to reach out.

Best of luck!

@Ben Kelleher Congrats on your business deal! I do a lot of business in the market that you are looking in and have helped dozens of Bigger Pockets members purchase here. There are nuances to owning here that other markets don't need/have and vice versa. We don't have oceans to gaze at or mountains to ski or forests to watch wildlife....we have theme parks. 

Although Orlando has a lot more to offer than that, that is the reason we have over 70 million visitors a year. Universal is opening a whole new theme park and Disney just announced another too. So you'll hear alot of others that don't know our market parrot 'over saturated' because that's what they heard. Do we have tens of thousands of units..YES, can we support that many..YES. However, you do have to put in work and imagination, the days of sticking up some posters and buying a Mickey Mouse comforter at Walmart are long gone. If you buy in the right community and prepare your house to be as unique and memorable as you can, you will (should) do very well. You have to treat it like a business. The amateurs are the ones selling. 

I'd be happy to dive deeper into all of this and point out some of the communities/resorts that you should focus on. My contact info and a calendar link are in my profile. 

Best of luck!

@Chris Witham Bigger Pockets has lease templates under the tools tab at the top. It's a whole suite of forms that you can utilize for move in, pets, extentions, applications etc. Great place to start, but would recommend having an attorney look it over to include property specific or owner specific requirements just to CYA.

Best of luck

 Okay, that sounds good. If you need help or don't have an agent yet. I am happy to assist, I've helped many other Bigger Pockets members purchase and know those communities very well. 

@Sejin Kim Need more information. Are you financing? Is the home located in a community/city/HOA that allows the property to be used as an STR? Sellers motivation shouldn't factor in what you can afford, thats a bonus if they will negotiate, but your numbers have to make sense to you and work out for multiple exit strategies (str, ltr, sell etc)

Running the purchase numbers is pretty straightforward, use almost any online mortgage calculator, make sure you know taxes and insurance (taxes will go up a bit if it is currently owner occupied and you don't plan to live in it) Once you know your mortgage amount then start looking at other STR's in the same area and same size/amenities and see what they are getting per night and how many nights a month they are rented to calculate what you MAY be able to get. Take that number and subtract your mortgage and that will give you gross revenue. You still have utilities, HOA, replacements, sundries, pool cleaning, property management etc.

Hopefully this help a bit. I'm in Orlando too if you want to reach out. 

Best of luck!

 Reach out to Tim Schmidt with Righthouse Realty and let him know I sent you. He manages for a few of my clients. 407-335-8556

@Shameen Brown congrats on holding yourself accountable and setting goals! I wish you all the luck of squeezing out $500 out of a $325k house!! What areas are you looking in. Tampa and Orlando are both very strong demand and price, but provide some safety with appreciation and Florida overall being sought after.

I can recommend an agent for you to utilize in Tampa or if you are interested in Orlando, let me know. I'd be happy to talk through your strategy to see if I can add any value. 

Best of luck to you.

 Reach out to Camila Castrillon with 5 Star Adjusting. Please let her know I sent you

Good luck