All Forum Posts by: Shawn McCormick

@Hung Ma Welcome to the forums! Glad you are finding value here.

You are looking in the right area, keeping as close to Disney as you can. Your budget will only get you into a resort community if you look at condos and townhomes, you'll have enough options to achieve your goals. There are several available in some of the better communities (Windsor Hills, Championsgate, Paradise Palms, Storey Lake) that are all under $400k.

You didn't mention your loan type and down payment, using a big chunck of cash to put down will eat into any renovation budget and sounds like you are all in at $400. 

If you are using websites to sort thru communities, you are likely not narrowing down to just the ones that are specifically for STR, which you need to be. Happy to help point you in the right direction.

Best of luck!

@Chase Leavitt. I'm in Orlando and can speak to most of Central Florida, we are drastically underserved in multi-family. There are a couple of players just getting started in the build for rent model, so some of the homework has already been done. The biggest one is in Kissimmee (Osceola County). But you would do well anywhere within an hour of Metro Orlando. 

I agree with Kim that Polk county would likely be the best target as it's a middle ground to both Orlando and Tampa. As both those markets force out many buyers due to inflating prices, they are flocking to Haines City, Lakeland, Davenport etc. 

Would love to be updated if you decide to move forward. Best of luck!

@David Jean-Georges

Sorry about your situation. I totally agree with @Michael Baum, you really don't have options unless you could do a HELOC, depending on if you have any equity or if you 'overpaid' for the house last year. Unfortunately, Deltona isn't close enough to Disney to really do well with Airbnb. I do have friends that are successful in Sanford, Deland etc, but it is harder.

If you are really in a bind, maybe consider selling your house subject to the current mortgage (this will only be attractive to a buyer if your interest rate is 4% or below since the mortgage is still so new AND you have equity. IF...that is the case, you might get enough cash to go buy a multi family and have a better shot. 

As far as DSCR, they are higher interest rate and generally 20-25% down payment (some exceptions could get you in with 15%), so that is definitely not an option for you. If you are a Veteran, you could use your entitlements for a VA loan (0% down) Parts of Deland are eligible for a 0% down USDA loan, but the requirements for you are higher (credit score/income limits).

Hope this helps, best of luck.

@Santosh Prabakar Tyler is correct, many things will factor in what your rate is, all of what he said plus what flood zone you are in, the number of claims in the area you are buying, your personal claim history etc. Insurance companies have sophisticated software to determine if you and the property are worth the risk.

If the home is more than 20 years old, plan on paying for a wind mitigation and 4 point inspection along with your normal home inspection. I would also look up any properties you are interested on the property appraisers website and look for permits. If the age of the roof cannot be determined, the insurance company automatically has the upper hand.

Hope this helps, best of luck! I do have a great contact for hard to place properties (flips, renovations, buying in trusts or LLC etc).

@Michael Senia

Welcome and congrats getting started. Don't give up, everyone goes thru this, but most don't stick with it because its too hard or too confusing and then never do a deal..I've seen it dozens of times personally.

I would invite you to attend CFRI, the local chapter of the national REIA. The general monthly meeting is next Tuesday and there will be a couple of hundred local investors there that you can network with. There are many other meetings throughout the month for you to attend and soak up knowledge too.

I'm local in Orlando and would be happy to speak with you if and see if I can add any value to your journey.

Best of luck to you.

@Jake Warren Plenty of great areas mentioned already. Many variables to your goals... do you plan on building a portfolio in Flordia..look more long term metrics if you do, not just finding a deal now.

Insurance is plaguing the state right now, so IMO, I would stay away from anywhere near the coasts and really vet the property for 4 point inspection items as providers are getting really tough on binding policies. 

Another thing to consider is financing. It looks like you are from Canada and that's 30% down with different underwriting guidlines, so be ready for that too. If you need a couple recommendations for mortgage brokers let me know. 

Best of luck to you!

@Eber Garcia Do you have enough capital to contribute to the purchase price, up front points and/or rehab money? Hard money lenders are going to want some skin in the game generally.

I have a few contacts, some will use the homes ARV to evaluate rates and do draws, but still want you to have experience and/or money in the deal.

Best of luck!

@Caden Wakim

I'd be happy to have a conversation with you about this, I've helped dozens of investors purchase STR's here and there are too many variables and nuances to go over here without knowing more about you and your criteria and strategy. @Tyler Gibson touched on some great points.

I can help with the best communities to be in, do's and don'ts with the house and what to look out for. I don't typically get into the specifics of daily rates, fees etc, but can give a 30,000 foot overview of what you can expect based on bedroom count, community, proximity to Disney, theming etc to make sure you don't get lost in the 50,000 rental units here. 

Hope to hear from you, best of luck!

Congrats on your success! Thanks for sharing.

@Wendy S. I have lenders and a fantastic title company in Lakeland if you haven't found one yet. It is owned by husband and wife investor team and very familiar with Lakeland and closing on sub-2, wholesales, double close etc. 

Let me know if you still need help for either and of course, if you aren't represented, I'd be happy to help you there too.

Best of luck!