Orlando, Florida, is a vibrant, ever-changing area that continues to grow and flourish. Along with The City Beautiful's changes, the real estate market and rental properties change with it. Many regions offer excellent returns now and will continue to be hotspots for new tenants, rental property cashflow & appreciation. Determining and seeking the hottest areas for rental properties in the Orlando market isn't easy. Having the right guide and information can determine the factor between an average producing rental property and an excellent growing rental property investment. Every real estate investor has their strategy, so we'll break it up into high appreciation areas in Orlando and instant cash flow areas for real estate investors looking to invest in the Orlando, Florida market.
As a residential and multifamily Orlando property management company, we deal with rentals all day, every day. So, it is safe to say you're in the right place for determining your target area in the Orlando market for purchasing a rental property that yields your investment strategy.
Is Orlando The Best Place For Buying Rental Property?
Orlando is the best place to buy a rental property. There certainly is something special about the Orlando rental market. The underlying reasons Orlando, Florida, continues to be considered the best rental market in the nation are as follows:
- Low real estate prices compared to similar markets
- Population growth
- Job growth
- Quality renter population
- Quality of Life
- High rental rates
- Low property taxes
Investing in both single-family and multifamily rental properties are looking bright in the Orlando area. Rental properties are being positively affected by those factors. Now that we have discussed the Orlando Macro rental property drivers, let's break it down into specific areas that will contribute to investors looking for up-and-coming high appreciation and investors looking for cash flow in Orlando.
Top Five Orlando, Florida Areas for Purchasing Rental Properties - Appreciation.
1. Lake Nona
Lake Nona is an excellent location for buying a rental property that will appreciate as the Lake Nona area continues to grow. Single-family homes & townhomes master planned around a beautiful lake, make for a rental that will continue to increase in value. Known now as one of Orlando's fastest-growing areas, high-quality tenants are flocking to the Lake Nona area.
Lake Nona is a planned development headed by Tavistock Development Company. It is considered the fastest-growing community in Orlando; Lake Nona is the fastest-growing in the country.
Single-family rental home investments are more expensive than surrounding Orlando areas. In turn, rental homes lease for much more per month.
The Medical City provides a foundation for Lake Nona. Currently, Lake Nona is home to two ecosystems - Health Care & Human Performance. Institutions represent Lake Nona, such as the University of Central Florida College of Medical Education, UCF Cancer Center, Lake Nona Medical Center, University of Florida Research & Academic Center, and College of Pharmacy, Nemours Children's Hospital & GuideWell Innovation Center.
According to Realtor.com, Lake Nona rental properties and home sales data shows for single-family homes, condos, and townhomes, the median list price in Lake Nona in September is $549.9K with a median list price per square foot at $194. The median sales price is $494.8K.
According to Lake Nona Property Management ~ The Listing Real Estate Management, single-family, and multifamily properties lease extremely fast to qualified tenants, due to the medical and professional sectors pushing the area's growth.
2. Winter Park
Winter Park, Florida, is potentially the best Orlando city to buy a rental property. When people talk about Orlando, the most established and well-known city is always Winter Park—wrapped around the beautifully designed Rollins College, the area ripe with beauty.
Work-life and continued job growth are driving Winter Park for future growth and looking lively. According to BestPlaces, Winter Park's future job growth is 47.7%, which is 14.2% higher than the US average of 33.5%.
According to a property management company in Winter Park, rental homes lease quickly, many times in under 30 days. Investment properties in Winter Park are more expensive than surrounding areas such as Altamonte Springs, Maitland, Azalea Park, etc. The higher purchase price calls for higher rental rates, and your investment will continue to increase in value.
According to Neighborhood Scout, the average rental rate in Winter Park is significantly higher than the surrounding Orlando areas at $1,767/mth.
According to Realtor.com, the median list price is currently at 389.9K, and now, 168 rental properties available. Low inventory for rental properties allows real estate investors to push rental rates higher.
3. College Park
College Park, just outside of Downtown Orlando is an area up and coming, ready for growth, development, and new tenants. When you walk or drive in the College Park area, you'll fall in love with its charm. Owning a rental property in College Park is excellent for future rental rate growth and appreciation.
Many homes in the College Park area are older; as a real estate investor, this area is attractive for purchasing your rental at a lower price, putting a little money in for repairs/remodeling, and getting it rented for top dollar.
According to Zillow, the median home values of single-family and condos in the College Park area is $383,307. The forecast for home value appreciation is to increase another 5% over the next 12 months.
Rental rates in the College Park area are very high. According to Zumper, the average rental rate in College Park is up 7% in the last 12 months, currently at $1,485.00.
As a professional property management company near College Park, we know tenants are seeking this area. If the College Park rental property is clean, rent ready, and priced accurately, it will lease under 30 days.
4. Baldwin Park
Baldwin Park is a stunning, highly sought after area near Winter Park and Downtown Orlando.
Most residents of Baldwin Park own their home and enjoy a great family-friendly area. Highly rated schools such as Baldwin Park Elementary, Audubon Park, Cornerstone Charter Academy attract great high-quality tenants.
According to Niche, the median home value in Baldwin Park is $333,604. Higher priced than surrounding Orlando Areas. The Urban Suburban Mix from Niche shows 53% of Baldwin Park residents are renting. At the same time, 47% are owner-occupied.
Median rents for Baldwin Park are currently at $1,391.00/mth. Much higher than the national average of $949/mth.
According to Zillow, home values in Baldwin Park have increased by 4.7% over the past year. This is an excellent sign for rental properties in Baldwin Park to continue to increase in value.
5. Curry Ford West
Curry Ford West consists of the best up and coming areas such as Conway and the Hourglass District. It's coined as Orlando's newest main street. From craft beer to revitalization, residents are eager to move into this area of Orlando.
According to Curry Ford West, their vision for future growth is to connect residents and business owners, cultivate and revitalize the community and stimulate local business.
Residents of this area are continually connecting with local neighbors and businesses. Events such as Curry Ford Pop Up Park - Pallet Painting, Main Street 101, Ghostbusters Drive-In, Sip & Savor 2020, the list goes on. Events are held every week through the Curry Ford Facebook Page. The new age of renters will continue to flock to this area of town. There isn't a more urban, unique part of Orlando than Curry Ford West.
Home prices in the Curry Ford West area range from $200,000-$500,000+. You can find excellent block style older homes that need revitalization; once remolded, you can get fantastic rental rates and ride the appreciation wave.
Best Orlando area for buying Cash-Flow Rental Property.
Casselberry is a town in Seminole County, nestled between Maitland, Altamonte Springs, Longwood, and Winter Springs. Just 10 miles north of Downtown Orlando, residents have the suburban feel while being close to everything Orlando living offers.
Casselberry Named Tree City, USA, the area is rich with preserving and maintaining the city's beautiful landscape. Casselberry is proud of its awards separating the town from other places in Orlando.
Residents choose to live in the Casselberry area and enjoy their space, with most rental properties falling into the single-family category.
Casselberry Cash-flow - home prices are lower than surrounding areas, the real estate is older, well-established homes that yield high rental rates. According to Point2, $56.01% of occupied properties are owner-occupied, and renter-occupied housing units are 43.99%. Meaning, when you purchase a rental property in Casselberry, it won't last long. With rental property inventory low, renters don't have many options.
According to Neighborhood Scout, average rents in Casselberry are at $1,519/mth. Real estate in Casselberry is older, with 73.3% of homes built between 1970-1999. 39.6% of households are single-family homes, 13.3% townhomes, and 28.4% Apartment and Multifamily units.
Older aged single-family homes in Casselberry allow you to put your cash into a property that will produce significant monthly cashflow.
Kissimmee, Florida, is typically categorized as a vacation destination. Located in Osceola County near Walt Disney World, Universal Orlando Resort, and SeaWorld Orlando, vacationers visit all year round. As a real estate investor, you may think about Kissimmee as a place to purchase short-term vacation rentals, but are Orlando short-term vacation rental properties a good or bad idea?
Here at The Listing, we choose Long-term rental properties over short term options, especially in today's post-COVID era. Kissimmee rental properties yield excellent cash flow every month.
Home prices in Kissimmee, Florida, are priced much lower than surrounding Central Florida areas. According to Neighborhood Scout, the median home value in Kissimmee, Florida, is $212,516, and the number of homes and apartments is low at 21,667. 59.6% of residents in Kissimmee rent vs. 40.4% being owner-occupied.
As a property management company in Kissimmee, Florida, we see a massive influx of renters in the Kissimmee market. When a home gets listed for rent, there are hundreds of inquiries.
The average market rent in Kissimmee, Florida, is $1,478/mth, which is extraordinarily high and allows real estate investors to increase rents and consistently create a positive cash flow rental property.
Maitland, Florida, is a city in Orange County north of Winter Park and south or Altamonte Springs and just 10 minutes from Downtown Orlando. Residents enjoy living in the area because of its proximity to Winter Park, Downtown Orlando.
The population of Maitland is continuously growing and outpacing rental spaces available. According to RentCafe, average rents in Maitland are $1,460/mth. As an Orlando multifamily property management company, we have seen more apartment complexes popping up in the Maitland market. Single-family rental properties are highly sought after in the area and have room to increase shortly.
According to Realtor.com, the median list price of single-family homes in Maitland was $375,000 in September. Although there are still undervalued properties that can be scooped up in the area, home prices continue to increase. If you find an undervalued rental property asset, make sure you are competitive. Many investors seek rental in the area because of the cash flow opportunities and secure rental increases.
Oviedo, Florida, is a city in Seminole County well established with roots dating back to 1865. Residents in the area enjoy the small-town feel, enjoying relaxing farmers' markets, historic downtown features & world-class state parks, all featured in Oviedo, Florida.
With low inventory for rental options for renters, rental rates are high and continuing to rise. According to Point2, 77.32% of housing units are owner-occupied, and only 22.68% are renter occupied.
The tenant prospect pool is high; with such low inventory, renters must pay high rental rates to secure a home. Many UCF students have their eye on Oviedo living with it's proximity to the University of Central Florida.
According to Neighborhood Scout, Oviedo's median home value is $357,809. Oviedo hosts 12,282 Homes and Apartments. High rental rates in Oviedo are at $2,094/mth.
With average rental rates over $2,000+ per month, seeking undervalued single-family rental properties in Oviedo is necessary. You can see instant cash flow and appreciation.
Oviedo may be a hybrid with cash flow rental property and great asset appreciation.
Apopka, Florida, is a town in northern Orange County, sitting against Lake Apopka. Apopka is one of Central Florida's top destinations for outdoor recreation, with stunning landscapes featuring lakes, springs, and natural walking/biking trails.
Residents enjoy the outdoors and small-town feel Apopka offers. Many manufacturers and agricultural companies are moving to the Apopka area. Apopka has seen the job market increase by 3.9% over the past year.
According to Neighborhood Scout, the median home value in Apopka is $242,354. Average rental rates in Apopka are sitting at $1,708/mth. The majority of renters are looking for single-family residences and willing to pay high rental rates.
In Apopka, Florida, real estate investors can find low valued rental properties to purchase. Being off the beaten path, Apopka features single-family rental homes much lower-priced than surrounding Orlando areas.
Best Orlando Areas To Invest In A Rental Property.
Orlando and Central Florida are recognized as one of the best places to buy a rental property. The Orlando real estate rental market is ever-changing, and new areas are popping up all over the city. As a real estate investor, being ahead of the curve is a must, and following our guide will produce positive outcomes. First-time rental property purchasers and seasoned real estate investors (no matter your strategy) can seek significant rental property assets here in Orlando.
As one of Orlando's highest-rated property management companies, we enjoy connecting and educating real estate investors. If you have any questions about our top 5 Orlando areas for buying a rental property or would like a free rental analysis for your rental property, feel free to reach out. Cheers!