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All Forum Posts by: Shawn McCormick

Shawn McCormick has started 11 posts and replied 1044 times.

Post: Struggling with a strategy

Shawn McCormick
Posted
  • Realtor
  • Orlando, FL
  • Posts 1,115
  • Votes 877

Your agent should really be helping you with this side of it, if they are not knowledgable about these communities, I would move on.

Post: Struggling with a strategy

Shawn McCormick
Posted
  • Realtor
  • Orlando, FL
  • Posts 1,115
  • Votes 877
Quote from @Keith Davighi:
Quote from @Shawn McCormick:

@Keith Davighi The Orlando market has 10's of thousand of units and trying to compare one to another based off of a few peoples financials could be a waste of time. When purchasing a STR here, they come fully furnished and generally with any future bookings in place, so you could walk into a decent amount of revenue. However, the past performance doesn't necessarily reflect what you will/can do. The overwhelming majority of owners are out of state or out of the country and aren't that involved in marketing or day to day operations.

That being said, I would suggest you narrow your search to a few of the better known , well amenitized communties (i.e. Championsgate, Windsor Island, Storey Lake etc) and define your budget and focus on the size home that you are comfortable starting out with. From there find an agent that can help narrow the search and help find actual motivated sellers that are willing to negotiate. Keep in mind, everyone that owns one is also an investor, they want top dollar and you want a deal and as long as their unit is cash flowing, they may not be too motivated. 

You have to have a unit that stands out here. You can't just throw up a 5 bedroom close to Disney and expect to do well, there are thousands of those. So choosing the right property (already well themed out or easily transformed) and location. We don't have mountain or ocean views, it is all about proximity to the parks and how well themed out it is..period. So generalizing with data from the sites you mentioned doesn't account for performance based on an outstanding property from an average one....think of a 'zestimate'..it doesn't know the house was just remodeled and is superior to the neighbor, it is just taking averages of the area. 

So don't get discouraged, but talk to agents and property managers that know the area and can help.

Best of Luck!

Good advice all around thank you Shawn.  I do have an agent that I’m working with and they are an investors agent so they’ve been pretty helpful.  I am certainly looking at places that are close and at least partially themed.  Small pools with heaters are definitely a plus so that is part of the search criteria as well.  Part of what’s killing some of these deals for me are the high HOAs so I’ve been trying to steer clear of anything over 200 per month unless they have great amenities and decent financials.  Almost pulled the trigger on a place in Championsgate but their numbers (for some reason) were pretty poor.  They blamed it on the mgmt co.

I went as far as to go down to the area personally and meet with the agent to visit about 10 properties.  Being down there was very helpful and it gave me a better sense of what the neighborhoods were like.  I’ve been in Calabay Parc, Championsgate, Highlands Reserve, Paradise something or other etc.

Thanks again for all of the tips.  👍🏻



I wouldn't rule out higher HOA's, those fees will generally include 24 hour live guard, fantastic grounds, pool, clubhouse, lazy river and all the other amenities PLUS cable, internet, trash and lawn maintenance. If you separate those on a P&L, they will likely add up to the amount. Plus in one of these communities, you get the peace of mind that they won't be coming after you for running a STR, they are purpose-built for this. If you want to risk going in a 'regular' neighborhood, you likely face this issue sooner than later.

You mentioned Calbay Parc and Highlands, I don't have either of those in my top 10-12 communities. If you want to be successful in Orlando, you must be in a top tier community with great amenities and close to Disney, there just isn't another option IMO, its not worth it.  

Post: Finding Off Market deals in Orlando

Shawn McCormick
Posted
  • Realtor
  • Orlando, FL
  • Posts 1,115
  • Votes 877

@Emmanuel A. Welcome and congrats for getting back in it. There are a few of ways to find off market deals. One is joining and attending local meetups and REIA's. CFRI is having their main monthly meeting this Tuesday near downtown and there are wholesalers there (along with all other types of investors and trades). Second would be to simply google something like 'sell my house fast in orlando'...you'll get tons of results and many will be from out of state, but sign up for their email lists. Third, there are several Facebook groups locally that post deals all the time. And then, of course, you can do you own marketing, but lists, driving for dollars, calling FSBO or expired listings and much more. Hook up with divorce or probate attorneys, go to auctions, estate sales...these are things that wholesalers can't or won't do, so less competition.

Hope this helps, best of luck.

Post: Struggling with a strategy

Shawn McCormick
Posted
  • Realtor
  • Orlando, FL
  • Posts 1,115
  • Votes 877

@Keith Davighi The Orlando market has 10's of thousand of units and trying to compare one to another based off of a few peoples financials could be a waste of time. When purchasing a STR here, they come fully furnished and generally with any future bookings in place, so you could walk into a decent amount of revenue. However, the past performance doesn't necessarily reflect what you will/can do. The overwhelming majority of owners are out of state or out of the country and aren't that involved in marketing or day to day operations.

That being said, I would suggest you narrow your search to a few of the better known , well amenitized communties (i.e. Championsgate, Windsor Island, Storey Lake etc) and define your budget and focus on the size home that you are comfortable starting out with. From there find an agent that can help narrow the search and help find actual motivated sellers that are willing to negotiate. Keep in mind, everyone that owns one is also an investor, they want top dollar and you want a deal and as long as their unit is cash flowing, they may not be too motivated. 

You have to have a unit that stands out here. You can't just throw up a 5 bedroom close to Disney and expect to do well, there are thousands of those. So choosing the right property (already well themed out or easily transformed) and location. We don't have mountain or ocean views, it is all about proximity to the parks and how well themed out it is..period. So generalizing with data from the sites you mentioned doesn't account for performance based on an outstanding property from an average one....think of a 'zestimate'..it doesn't know the house was just remodeled and is superior to the neighbor, it is just taking averages of the area. 

So don't get discouraged, but talk to agents and property managers that know the area and can help.

Best of Luck!

Post: From Boston to Miami or Orlando

Shawn McCormick
Posted
  • Realtor
  • Orlando, FL
  • Posts 1,115
  • Votes 877

@Peter Olejnik I'm in Orlando and can speak to whats going on here, but not really Miami. 

Orlando is still growing tremendously and has plenty of land an opportunity. Everyone still thinks its all about Disney and that just isn't the case anymore. It's centrally located to be able to get to Tampa, Jacksonville, Miami, Space coast etc. There is a high speed rail opening next month direct to Miami too. Disney does help to keep the MSA cleaner, safer and avoids some of the pitfalls of other big metros. 

Whether you believe it or not, Miami is already dealing with weather-related issues and its going to get worse. I don't have numbers, but as I understand, many Miamians are heading this way to get away from the high prices, crime, over crowding and potential global warming issues. On top of that, condos are going to get even more expensive due to the related safety regulations stemming from the  Surfside condo collapse.

Orlando isn't perfect, but it is positioned for growth, appreciation and is still affordable compared to many markets.

Best of luck!

Post: Selling in NYC to buy in Orlando area

Shawn McCormick
Posted
  • Realtor
  • Orlando, FL
  • Posts 1,115
  • Votes 877

Hi @Christian Orellana. Florida if viewed as more landlord friendly than tenant. I am not a PM or lawyer, but it is fairly easy process to deal with tenants. Every investor has a different set of criteria and approach, but Florida has always been a great place to have rentals. I have a buyer selling his 8 homes in Buffalo now to come here and buy homes (but the value of his 8 will only buy a few down here).

Values have been increasing by double digits in most of the state for a decade, rents have increased as well, but just couldn't keep pace with appreciation. So the '1% rule' is really a thing of the past. 

Other benefits would be no state income tax, surging economy, weather, no basements, no furnaces, almost exclusively block built homes. So lots to consider!

Let me know and we can dive a littler deeper if you like. 


Best of luck!

Post: Navigating Homeowners Associations (HOAs) as an Airbnb Investor: A Double-Edge

Shawn McCormick
Posted
  • Realtor
  • Orlando, FL
  • Posts 1,115
  • Votes 877

Here in Orlando, I only recommend buying in an HOA resort community. That is, if you are targeting theme park goers. There are plenty of successful ones outside of the theme park cooridor, but if that is where you are looking, they are typically...

Guard gated, beautifully landscaped, have a clubhouse with lazy river, volleyball, tennis, multiple pools, game rooms, nail salons, restaurants/tiki bars, fitness centers, movie theaters and more. Plus the fee includes exterior lawn maintenance, cable, internet and trash. Once you see the value in all of that and know that is is purposefully built to be STR, its hard to argue against it.

Post: Which AirBNB estimator do you like the best?

Shawn McCormick
Posted
  • Realtor
  • Orlando, FL
  • Posts 1,115
  • Votes 877

@Keith Davighi I like speaking directly with Property managers that have many units under service in the communities you are looking at. They can provide you with real-time data, not an algorithm (those are good to paint a picture, but they don't know the nuances and amenities of each individual home). Many of the property managers talk to each other and compare notes and share marketing ideas and 'run comps' on each other.

The other option would be the 'enemy method' to search for similar size home within your community and others close by with similar amenities and scour their calendars. 

Hope this helps, best of luck to you!

Post: New Construction High End Vacation Rental Near Disney

Shawn McCormick
Posted
  • Realtor
  • Orlando, FL
  • Posts 1,115
  • Votes 877

@Eve Zaher sounds like you are going to be in Reunion/Encore. I would not encourage you to spend that much if not in that particular community. There is no other STR community worth spending anywhere near that on only a 6 bed, no matter how well themed out it is.

You are spending about $90k per bedroom which is double what most spend and still have a well themed house. Unless you are in love with Reunion (if you plan to use it yourself, for your employees/family and love to play great golf), you have other options that you could buy an up and running unit...or two for that price and not have the restrictions that they have there. Does the home come with a membership, or is that extra? For your $550 cash out of pocket, you could buy two 8 bedroom, fully furnished and themed homes with bookings already in place in Windsor Island and still have a ton of money left over to go bigger on the decor if you wanted. 

Would love to learn more about this investment as that is really high for a 6 bed that still needs furniture. Your down payment will be tied up for months and then when its built, you could spend another month furnishing it before you can list it for rent and start making revenue. 

And as far as Disney moving..that's not really a thing..just a lot of political posturing.

Best of luck, reach out if I can be a sounding board!

Post: New to the game & looking for mentors and direction

Shawn McCormick
Posted
  • Realtor
  • Orlando, FL
  • Posts 1,115
  • Votes 877

Hey @Dezmon Jackson welcome and congrats on setting some goals. There is tons of content right here on BP about those niches. Look up keywords pertaining to what you are interested in, listen to as many of the podcasts and consume some books too. The next best thing is to join your local REIA and network with other local investors that may be willing to mentor or coach you.

Best of luck!