All Forum Posts by: Shawn McCormick

@Elizabeth Ben Congrats on jumping in. The median price in Orlando is up over $400k now, so buying a single family in a decent area will be really tough with $70k. 20% down would be 80k plus closing costs and possibly points. You might find a lender with a 15% DSCR product, but you'd still be pushing it.

There are still some areas that you can find good properties $300-350, but they generally go pretty quick if they are in good shape. Cash flow would be the next concern if that is what you are looking for. Although rents have gone up here quite a bit since the pandemic, so have prices and it is difficult to find. Getting appreciation is a more likely scenario.  I actually have a listing coming up near Valencia college that has a converted garage that would be a good fit. Are you working with a lender yet? Things slow down here a bit once school starts, so competition might lessen up soon, but inventory levels are still quite low and in favor of sellers. 

Happy to talk more specifics if you like. Reach out if I can help.

Best of luck!

@James Nicholson

I do not own a STR locally, but have helped dozens to purchase. The ones the bought larger home that either were well themed out or they invested themselves to do that, have reported to me that they are still doing well. Considering what others have noted, not to include numbers from 2021-22, it will be tough to make numbers work.

The top 10 or so communities that have great amenities and location to Disney will continue to do well as they market globally, have the relationships of tour group operators, travel agents, youth sports leagues and all the others that come here for Disney or as a stop to get to the cruise ports or whatever.

You mentioned Reunion specifically. I typically only recommend that community to those that will get personal use out of it. If you are an avid golfer or enjoy the benefits of being at an actual luxury community as opposed to many of the others that are geared almost exclusively for families with children. Reunion is considered a different animal in that it caters to the more affluent guests and corporate lodging clients. With the HOA fees higher and on site management 'requirement', it is more difficult to cash flow here. If you can get personal use out of it, use it as a 'spiff' for your employees, friends/family or simply get creative with your accountant and write off as much as you can.

Most of the other resort-style STR communities top out around $1MM-$1.3 MM for 10-12 bedroom homes. Reunion has condos, townhomes, single family and ultra-luxury up to $14-15 MM. So if you have connections to influencers, television, athletes, producers, and musicians that could make use of a higher-end property consistently, you may have an advantage. Otherwise, Reunion carries higher risks than some of the others.

Best of luck, keep us posted

@Andy B. Welcome to the forums. I'm in Orlando and would be happy to talk to you about the market here. Yes, we have high competition, but for a good operator that understands the nuances of what makes a great STR in our market, you can do very well.

The theme parks are still expanding, we are year round, and globally recognized unlike others that may have good recognition from the US population, but virtually unknown abroad. For your budget, you are in the 6-8 bedroom price range and if you can go a little higher, 8-10 and that is where a lot of the opportunity sits as there are simply less of the larger homes.

If you'd like to dive deeper, please reach out. 

Best of luck!

@Courtney Radmall, you can use the 'Find an agent' tab at the top of the page. I'll throw my hat in the ring, but per your instructions won't reach out to you directly. I do have a link in my bio to schedule a call if you choose.

Best of luck to you!

Hi Sean,

Fellow 'Shawn/Sean" here. I work heavily in the STR market here in Orlando and have helped a couple dozen other BP members purchase. I'd be happy to have a call and see if I'm a good fit for you. You can message me or schedule a call from the link in my BIO.

Looking forward to speaking with you. 

@Erica L Ward Do you need a PM license in Illinois to do that? Maybe start out as a 'host' and learn the trade that way. Being a PM is much different, but certainly a good way to learn. 

Best of luck!

@Jarrid Perusse I agree with the previous posters. I live in Orlando and am a Realtor® so depending on where exactly you are at, you potentially have a gold mine on your hands. Very little inventory of actual multifamily and downtown has experienced tremendous appreciation and will likely continue for a long time. So invest in what will keep quality, high paying tenants that are willing to pay for the convenience/lifestyle of living downtown. Areas like Sodo, Mills/50, Milk district and others that are gentrifying are only going to add value to your property. 

Typically, the idea of multifamily is to add value and decrease expenses to get a higher cap rate, so look for anything you can do to trim costs (landscaping, property management, insurance, water bills etc) and add value anyway you can (provide amenities, charge for storage/parking etc). With insurance being a cash flow killer in Florida, make sure you invest in roofs, wiring, water heater, pest control...all things that will cost you more now or potentially cause damage along the way that you can control before they become an emergency. 

Hope this helps, if you ever want to sell. I have buyers lined up wanted multi family here. Best of luck!

Hey @Alex Honka welcome to RE and Bigger Pockets. There is plenty of information and help right here. Start listening to podcasts and go to your local REIA meetups. You'll be able to meet and network with wholesalers, mentors, hard money lenders, contractors and so much more. Tampa has one and so does Orlando (CFRI.net) and they have a chapter that meets in Lakeland that sounds like where you are.

You don't necessarily have to raise capital for flipping. There are private money lenders, family/friends, hard money lenders etc. 

Best of luck!

RTR Title-Hope Richards

Equity-Title-Sue Fulco

Tim Davis with All County 863-248-7713