Looking to invest in the Orlando rental market? Well, you're in the right place for acquiring excellent long-term property assets (Orlando, Florida.) Real estate investing can be a complicated task if you don't know where to start or even how to start. As Michael Jordan states, "Talent wins games, but teamwork and intelligence win championships." The same goes for real estate investing; whether you are a local Orlando real estate investor or a first-time rental property purchaser, having the right real estate team in place creates champions. Today, we'll be discussing the perfect guide to buying rental property in Orlando, Florida.
Why Buy An Orlando Rental Property?
Investing in the Orlando real estate market allows positive cash flow opportunities and rental property appreciation. Many factors are currently pushing rental rates higher, such as population growth, as we see many new Florida tenants flooding the Orlando rental market. Central Florida is a hotspot for new residents flocking to the area, many of which move from highly populated areas, paying high rental rates to secure their new home. According to the Orlando Business Journal, the number of home renters in Florida grew from 1.8 million to 2.6 million between 2000 and 2017 and continues to rise. Florida is erupting with built-to-rent new construction options and supporting a window of opportunity for rental property investors. The Listing Real Estate Management, a local property management company in Orlando, Florida, is seeing first hand the higher prospect pools for prospective renters as time goes on, in turn, pushing the needle for increased rental rates and significant rental increases. According to Orlando Weekly, the number one place in Florida to buy a rental property in Orlando, fueled by area growth, population growth, and great rental property opportunities.
Understand the Local Rental Rates
Before purchasing a rental property in Orlando, you must know and understand what your property will bring in for RENT. Area demographics and psychographics heavily influence many areas in the Orlando and Central Florida rental market. You will need to be provided with a Free Rental Analysis to understand better what your potential rental property will bring in every month. To run the numbers on your own, you will need to look into the area occupancy rate, rental property demand, rental property competition, and time on the market. If you purchase a rental property in the Top 5 Areas to Buy a Rental Property in Orlando, you will not miss a beat producing excellent rental property returns.
Know Your Rental Property Strategy
You may watch HGTV and think any real estate investment is a smart play. Well, there are many different real estate rental property options available. First-time rental property investors must clearly understand their objectives and how to execute on them. You must know, are you looking for cash flow, appreciation, or a little of both? There are areas throughout the Orlando market that allow first-time real estate investors to reap the benefits of high producing positive cash flow investments. Then some areas allow a stable investment, bound for rental property appreciation. According to Orlando Sentinel, South Orlando, Lake County, South Orange, St. Cloud, Osceola rank among the best counties and areas for buying affordable real estate. Other communities such as Winter Park, Windermere, Oviedo, Lake Mary, Baldwin Park, College Park, and Winter Garden make safe and stable real estate investments. These areas contain higher real estate prices but correlate directly with higher rental rates. Paying down your mortgage or riding the appreciation wave in these areas is a beautiful thing.
Top 3 Rental Property Investment Strategies
1. Cash Flow Rental Property
- Your Orlando cash-flow rental property strategy consists of creating consistent rental income. Many investors purchase distraught or fixer-upper rentals for a bargain, put a little money in, and benefit from rising rental rates. This strategy is great for creating extra income.
2. Buy and Hold Rental Property
- Buy and Hold rental properties in Orlando are excellent options for real estate investors to enjoy long term appreciation. If you locate the right rental property, you’ll enjoy both cash flow and appreciation. The real estate market in Orlando appears to be bright when it comes to this strategy.
3. Short-Term Rental Property
- This strategy allows rental property owners to enjoy monthly income from greeting guests for a short stay. This strategy is currently being affected by the COVID-Pandemic, but with Florida opening back up, you may take advantage of low home prices. You may need to be more patient with this method to start seeing a positive return. Many investors are currently benefiting from converting Orlando's short-term vacation rental properties into long-term rental properties.
- If you are unsure of your rental property purchase strategy, make sure you have a reliable real estate advisor that can educate and align you with your perfect investment property. Cash-flowing, positive-appreciation rental properties can be tough to find in any market. Your real estate agent needs to know the area and be highly versed in seeking stable rental property investments. The Core Group Real Estate in Orlando is a team of highly skilled professionals that can help seek, advise, purchase, and sell real estate investment assets.
Teamwork Makes Dreamwork
Putting your team together creates your championship team. Purchasing a rental property is a complex mission that requires precise puzzle pieces in place to succeed. After all, your rental property can be affected by numerous factors such as location, the number of bedrooms and bathrooms, demographics, rental rates for the area, amenities, HOA dues, property taxes, the list goes on. A great team in Orlando will do all the legwork for you. Your expert real estate agent with Core Group Real Estate will work alongside you to evaluate and acquire your perfect rental property. The Listing Real Estate Management, an expert Orlando property management company, works with your local realtor to analyze potential rental properties and give you a great idea of what your rental property will produce for monthly rental income.
What are the Benefits of Purchasing a Rental Property with a Property Management Company?
A local property management company works with rental property assets daily. We run thousands of analyses on rental properties in the Orlando and Central Florida area. When you purchase a rental property with a property manager, you can find the perfect rental for your investing needs. Once you close on the rental property, your property manager can instantly start marketing your home for rent. Reducing your vacancy time means you can start earning rental income immediately.
Property Managers Conclusion
Michael Jordan, an all-time great, knows how critical it is to have great teamwork around him. You can't win championships by yourself. Working with the right real estate, and property management team creates an easy and seamless experience. If you are interested in purchasing a rental property in Orlando, we'd love to connect and share how we can help! We are a professional property management company in Orlando and ready to create a championship experience for you and your investing strategy. Cheers!