All Forum Posts by: Russell Holmes

@Corby Goade the market around Orlando can be like that. I've got one under contract now for about 2% under list price and beat 3 other offers to get it still. Meanwhile another property last week I had two buyers offer $5k and $11k over and it went for more to someone else. It really depends on the list agent pricing strategy at time of listing and the condition of the house. Oddly the most ridiculous pricing wars I see currently are on distressed houses, some going for numbers that would put you in the red with anything but DIY rehab paying yourself nothing.

Even still, I'll submit any offer that seems reasonable based on market and analysis that factors in comps, repairs, and condition. Sometimes others pay more and that's ok, but I'll also refuse to prepare something I know for a fact won't stick.

@Ivonne Pinedo which area of Central FL are you looking? It's a hot market but definitely not one where negotiations on price are impossible! Sounds like your current agent may be more of a retail type agent maybe.

@Sanjeev Sharma to piggyback on what Tyler has said, you must also look at the bigger picture. The 1% rule is simply a rule of thumb to consider.  Several years ago everyone was looking for "2% rule" and it took awhile for them to realize that it simply wasn't feasible in the current market.  Florida has lower property taxes than many other markets in the country (although it does vary county to county).  Insurance is pretty affordable inland as well compared to other areas closer to the coast. Population is growing exponentially and home buyers and renters alike are faced with very little inventory to choose from.

 The areas with better schools and lower crime are also the areas where there is the most tenant demand and better tenants.  Vacancies fill more quickly, tenants likely stay longer. In a very short period of time, rents will increase to 1% or more of what was paid, it just might be by year 3 or 4, but there's still cash flow in the meantime.  Many of the recent rental properties I've been finding are in the 0.75-0.8% rent to price ratior range, but they also often have newer roofs, HVAC, updates, and will be rent ready the day after closing or after a few cosmetic updates.   

I find there to be a 'sweet spot' of being far enough out from Orlando for prices to come down, but close enough for plenty of employment within an easy commute.  It's very hard to find good rental properties in trendy Orlando neighborhoods, but areas like Longwood, Apopka, Sanford, and Mt. Dora all have very strong rental demand with more reasonable prices.  As development and 'urban sprawl' extend outward from Orlando over the years, this 'sweet spot' slowly creeps further and further from 'Orlando'.

I would honestly search for another brokerage. I'm part of a huge national brokerage where I've never met my state broker face to face. I get answers to my questions from him or one of the assistant managing brokers quite quickly every time. I know I'm not the most productive agent out of the hundreds they deal with, but they answer my questions as if I am. One messy situation with lots of legal nuances I was on the phone with my brokerage team collectively for an hour or more over a few days as if they didn't have any other tasks.  I know other agents  locally with small 100% commission investor-friendly brokerages that also get answers promptly (not training, per se, but compliance questions answered). It doesn't matter if you're with a big or small company, investor focused or retail brokerage...your broker's reputation is on the line if you mess up, and if you've asked a question with no answer the disservice is to you AND the broker. I'd ask around other agent/investors in your area and find a better fit. It's obvious by your post that you don't need "hand holding" you know what you're doing, but every agent is going to have compliance questions from time to time and it's ridiculous not to answer those questions! 

@Sasha Josephs I feel that there is huge growth potential in the North and Northwest Orlando market, specifically Apopka, Mt. Dora, Eustis, and Umatilla to the Northwest and Longwood, Lake Mary, and parts of Sanford in the North. It's the classic 'if you build it, they will come' type model.

If you look at a map of Orlando area on satellite view, there's a huge 'green patch' North of Orlando just above Apopka/Altamonte Springs.  This is the Wekiva State Forest and Rock Springs Run...no development will happen there, it's beautiful natural land with state parks, hiking trails, and springs to enjoy.  To the East of this green is already developed along the I-4 Corridor with Lake Mary, Sanford, Deltona.  West of this protected state land has been a lot of cows, agriculture, and overall rural areas for decades.   The 'Northwest quadrant' of the Greater Orlando area has just been overlaid by hundreds of millions of dollars in highway infrastructure with the Wekiva Parkway (http://www.wekivaparkway.com/) which brings easy commutes and connection to a huge swath of what used to be pretty detached rural areas.  The overall project has been 25 years in the making and the Apopka-to-Mt. Dora section of 429 just opened in 2017. The Disney-to-Apopka leg of 429 opened in about 2002 and Maitland-to-Apopka 414 toll road in 2009.  Work is underway currently on the East/West leg of 429 from Mt. Dora over to Sanford/Lake Mary which traverses some ecologically fragile lands with very well thought out design (elevated sections for wildlife underpasses, a lengthy span over the Wekiva River to have no pilings in the water at all, etc).  When that section is done, travelers coming south on I-95 will save about 45 minutes from the usual slog down I-4 to get off in Sanford onto the 429 where the 417 currently connects from the South and take it out West through Mt. Dora and straight down to Disney.  Meanwhile, residents of Apopka, Mt. Dora, Eustis, and Umatilla already have easy commutes into Orlando and Maitland with Lake Mary commutes soon to come. Lake Mary, Maitland, and Orlando are really the three biggest white-collar employment zones with higher prices nearby, so communities within a 20-30min drive are always in demand.  There's a western leg of that wekiva parkway called the 453 that will eventually go Northwest from it's current end in Mt. Dora up through Umatilla to connect to I75 in Ocala.  These areas are already growing rapidly in development, appreciation, and tenant demand with plenty more to come.  ORMC/Orlando Health Hospital just bought 51 acres in North Apopka recently, Advent Health built a $200+ million campus in South Apopka in 2017.  There are multi-use zoning overlays covering hundreds of acres while you can get off a brand new toll road onto a two lane road with raw land all around.

It may not be THE BEST market in Florida, I don't pretend to know the entire state.  But it is an area that is definitely worth considering for long term holds. 

I'm finding good buy and hold deals in the area currently, and with the way things are growing, they are bound to become phenomenal deals if held for a handful of years as growth surrounds them.

@Drew Sharkey Welcome to BP, you've come to the right place! This site is a literal goldmine of information on a broad range of strategies. House hacking would be an incredible start in your position. Low down payment and the ability to have little to no housing payment. FHA and Conventional owner occupied loans (usually 5% down vs the 3.5% for FHA) require one year of occupancy. You could potentially buy one property each year with an owner occupied loan, moving out of the current property for the next. Quite a few investors with very large portfolios did this to build up their first 5 or 6 properties.

I will say, moving every year is FAR easier when you're young and single with (presumably) no kids.  I'm in my mid 30s with a wife and five kids aged 8-13 (don't bother with the math, some stepkids some biological in the mix, love them all...haha). I love my big family, but I'm not prime house-hacking material like you are. I really wish I had learned about the strategy when I was 19.  I am, however, teaching all of my kids about house hacking and Real Estate investing.  I'd be one happy Dad if they all grow up to move out into their own house hacks that their friends help pay for.

@Steven Meador that's great!  It's refreshing to hear from someone who's familiar with the area already instead of focused on Orlando.  I agree on your interpretation of values and rents.  Rents are a bit lower in this area compared to those closer to Orlando/Winter Park, but prices seem to decrease faster than rents.   I've found a few $150-170k houses in Mt. Dora, Eustis, and Umatilla that will rent for $1350-1500.  Same houses in Winter Park might be $300k but will not rent for $2700-3000/mo.

And yes, the phone number and email from my signature are my personal cell and email, feel free to reach out anytime.  I doubt either flip would be a great investment deal since they are targeted more towards retail buyers, but there have been some lessons learned on each for sure in regards to contractors, county inspectors, time lines, scopes of work, etc etc.

@Breelon Bryant I'd say to find a different agent. 

It's one thing if you were a non pre-approved buyer, tire-kicker, or otherwise just looking at listings casually. Not every 'buyer' is a true willing and able buyer that gets full engagement from me.  But if you're ready to move forward with an offer, you're every bit as qualified for your agent's time as anyone else they may be working with.  An agent who can only respond once per day is not going to be the one to send over deals the moment he finds them, reach out to list agents in a proactive manner, or otherwise have your best interests in mind.

I can't always answer my phone, but I'll always call back as soon as I can.  I can't always respond to email immediately, but I always respond promptly.  I'm working with two different buyers on offers of one property today and we've likely emailed back and forth 5 or 6 times, talked on the phone, and texted.  I have other things going on with other clients and listings too that I must devote time to as well, but if I'm not actively engaged with buyers wanting to make offers, I'm doing them a disservice.

@Stephanie Simmons I've had several clients use and recommend Kissimmee Granite www.KissimmeeGranite.com . They travel too, the last install for a client from them was in Apopka. They typically come out to laser-template within a few days, cut, and install about 5 days later, pretty quick turnaround.  Don't hold them to this, but I believe it is $25/sf plus some for the undermount sink, edge profile, back splash, etc. It typically all comes out to less than $40/sf for level 1 granite with undermount 60/40 sink, standard edge, and back splash installed.

@Steven Meador welcome to BP from a fellow Apopkan!  How long have you been in Apopka?

This is a great sub-market of Orlando to be in and we're seeing lots of growth around the area. I've got a completed JV flip on the market just off Mt. Plymouth Rd in North Apopka near the Lake Co line and another client's nearly completed flip off Ocoee Apopka near the new Advent Health Hospital campus. I'd be happy to walk you through both of those to explain some of the challenges and positives of each.

  I am finding lots of great opportunity in Apopka, Mt. Dora, Eustis, Sorrento, and Umatilla.  I grew up just over the Seminole line in West Altamonte Springs but have lived in Apopka for over a decade now.  I'm just off Vick Rd. near Apopka Elementary and my immediate surroundings have developed and changed immensely just in the past 10 years. Still a few horses and cows around, but they are getting more rare, haha!