All Forum Posts by: Shawn McCormick

 @Steve Uekert, although I don't currently own any STR, I have represented many on the purchase and sale side locally. Yes, the inventory has grown since rates started going up. All of these units are owned by investors, so the cost of entry is typically cash or 20%, so everyone was holding their breathe waiting to see if something would bend. However, it has now been about 5 months of this and sellers are seeing 60+ days on market to get any activity.

As long as they are/have been pro active getting bookings and not fearful of what 'might' happen, they are still cash flowing, so most are sticking to their guns and hoping that buyers will eventually accept the evolving market we are in and pull the trigger.

Inflation has affected American travelers that would typically drive here, but overall, I'm hearing that bookings are still quite strong due in part to Foreign travelers still having high demand. September is historically one of our slowest months due to our school years in America going back in session, so trying to get a snapshot of whats happening right now is not necessarily the best idea, I usually advise to look at Quarters and average them out, rather than get too worried about a week here and there. I've seen many calendars (just log into airbnb and try to book some units to see) and most are doing very well going into the winter months.

Hope this helps, best of luck.

@Account Closed I live in Orlando, but from Ohio and invest in both areas. They are completely different markets and should be evaluated as such. Also, comparing a city to a State is much different, what part of Ohio are you looking into. 

Taxes, insurance, landlord/tenant laws, jobs market, weather and soooo many other factors to consider. Prices have risen sharply since covid in Florida which has made cash flow more difficult to find, Ohio I have a pick of most anything I want. So Florida will suit you well in some ways like appreciation, more population growth, no state income tax etc and Ohio will be a lower entry point, strong economy in most major metros and cash flow. 

Orlando is always a good STR play if you think that might fit your needs, cash flow will be superior to LTR here.

Best of luck!

 Although there is a lot of inventory in those two areas, you'll find that the majority will be built 1920-1970 and very untraditional style. (not what your mind thinks of when you say duplex) Many are very small. 1500sqft or less and prices are starting in the high $300's. 

Something else to consider, if you plan to use for LTR, is the tenant pool. Most employment in beach areas is in tourism/hospitality or service-related industries. Those tend to be more transient which means higher turnover and vacancies. You will also have to consider taxes and insurance which will be considerably higher than the Orlando market. Florida in general has an insurance crisis right now, so that should be top of mind as well. These, of course, are my opinions and not necessarily reflective of the overall market. 

@Matheu Santos Are you speaking of COC or ROI, they are different. Yes, with the sharp jump in prices since the pandemic, cash flow has been much harder to find, but it's there.

As a foreign investor, I would start learning what the requirements for getting loan approval would be, some lenders will be a little less stringent if it is a brokered product, but typically it will be 25% down (Canada is 30%). It is very common in our state as we have a huge foreign investor base here for people looking to invest or just park money. You will find that getting good financials and even access to the units will prove to be tough and also that many are charging below market rents still, so that may be something to consider when analyzing properties.

Tampa overall has many more multi family units than Orlando, but also more areas that would be considered C or below areas, just find an agent that is familiar with the specific area you are looking for. I would say to find one in Tampa and Orlando. Many will say the work both, but they usually won't know both well enough to keep you in/out of areas you may not be comfortable investing in.

Hey @Easton Curtis not positive here, but it looks to be a trailer park where you don't own the land, so you won't be able to get financing on that. Mobile homes in Florida are titled like cars, unless they are 'attached' to the land that you would own, you can't get traditional financing on them. Also, they are depreciating assets, this one is newer, but you won't get financing typically on units older than 1988  and double wides (lenders please chime in). 

It is also listed from a broker in New York, which, to me is a red flag. 

@Deirdre Dyreson Hopefully your agent is familiar with these communities as they are very different. (age, ammenities of the community, HOA fees, popularity amongst travelers/travel agents and more).

Age of unit will determine how much wear is on furniture, how long the a/c has life left and other things that could eat into your ROI. The overall feel of the community and its amenities, how impressive are they. Also consider how many units are in each of those that are similar to yours. Regal Oaks are all townhomes and all have the same floor plan and all have hot tubs, how will you price yours..based on what everyone else is getting? In Storey Lake, they have condos, towns and single family up to 9 bedrooms, so much more diverse and most units will be several years newer. Look at HOA fees. Regal is likely around $350-400 and Storey Lake is around $700.

I would look at the ADR of both communities for the size and type of unit you are looking at and see if that makes a difference and will cover your expenses, PITI, HOA, cap ex, maintenance etc.

Hope this helps.

@Martene Clarke I'm in Orlando and can help with local stats and see if this is the right place for you to invest.

 Yes, I would suggest a single family over a townhome. A couple of the main reasons being that virtually no townhomes in vacation communities have garages and that is a space you can and should use to your advantage to place gaming tables, turn into a mini movie theater or just make highest and best use of it. Another would be that most townhomes all have bedrooms upstairs and with them so close together, it is hard to theme them properly. A single-family will have a garage and almost always bedrooms up and down and you can theme them. Single family will also have full size pool and hot tub, most townhomes just have a splash pool. Townhomes are just harder to stand out as the floorplans are pretty much all the same and its harder to differentiate them from each other. 

@Jose Moya You have a lot to unpack with your questions and they are all good and easy to answer. I think it best to get to know you and help give you a 30,000 foot answer to start and then dial in to how to get you in the right direction. There are plenty of forum posts about this specific area and recommendations on what you should do. As @Michael Baum mentioned, this is my back yard and have helped many others in your exact situation. 

I'll send you a message and we can connect to get started!

@Anthony Tonsoline Not sure if you meant to say that 'amenities aren't important' or not, but I'll assume you meant 'are'. You would be correct that they are vital to helping you to stand out. The larger communities like Championsgate, Windsor, Storey Lake and several others do well very much in part to the amenities that the community offers.Those, along with doing things to set your property apart from all of the competition will help your home get into the algorithms and get noticed. 

You certainly can find what 4 beds under $500, but it may be further away, less or basic amenities and the home may be older which means outlaying more in cap-ex down the road. I would be inclined to have you save a little more and wait for a property in one of the top tier communities. I just went under contract on a nice 5 bed in Windsor Palms for $550, so they are out there. 

Best of luck to you!