With a population of over 325,000 people, Orlando is one of the biggest metropolitan areas in Florida. As a landlord, the thriving demand and array of tenant options make it a great location for real estate investing.
Read on for some property investing strategies that can help unlock potential profits for landlords!
Know the Market
Understanding real estate market trends is the first step toward finding great investments. Before real estate investing, you should research:
- Inventory levels and available units
- The interest rates of potential investments
- Buyer demand in different parts of Orlando
The median home price in Orlando is currently about $390,000. However, there's a lot of variance in this figure since the least expensive properties can be worth less than $100,000.
Look into upscale vs affordable neighborhoods to decide which investment suits you. Luxurious homes can rent out for more and will have a greater appreciation rate, but they cost a lot upfront and are riskier investments. Segment the market to learn more about fluctuating costs.
Consider Different Investment Strategies
After learning more about Orlando's market and demand, it's time to consider different property investment strategies. Renting out your property will obviously be a top priority so you can earn passive income and make steady cash over time.
Think about whether you want a residential property for:
- Year-long leases that tenants can renew
- Short three-month vacation rentals
- Fixing up and flipping after a couple of short-term leases
You also need a long-term plan for your rental investments. This plan may entail:
- Keeping the property rented out until you retire/move into it
- Adding features to the property over time to increase its value for future sale
- Creating rent-to-own plans to sell to tenants
Value Your Property Accurately
At this point, once you choose an investment, you'll need to analyze its worth accurately. You might want to consider:
- Whether it's near any tourist attractions
- Proximity to nearby stores and businesses
- The weather in the area
- The local economy in the area
- Whether the property is in an up-and-coming neighborhood
- The quality of the building you're looking at
- The property size
- What features and amenities the property has
Setting rental rates is an important aspect of property management. You want to turn the highest possible profit without slighting renters. If your rent is too low, you won't make money; if your rent is too high, you'll contend with vacancy.
Talk With Real Estate Investing Experts
To make better investments, get real estate investment advice from property managers. They're experienced and knowledgeable about the Orlando real estate market and can provide accurate rental valuations for potential investments.
Property managers can also:
- Help set rental rates
- Draft and negotiate leases
- Provide investment property tips
With expert help, you minimize the chances of losing money unnecessarily.
Start Buying Rental Properties in Orlando, FL
Now that you know how to be smart about real estate investing in Orlando, it's time to get started.
Right House Realty is committed to helping you identify investment opportunities and get you the highest passive income possible. We offer a wide range of services, so contact us to learn more about what we have to offer!
