Buying real estate in Orlando as an investment can be a great opportunity to begin building wealth and earning a stable rental income. There are so many opportunities here, whether you want to rent out a short-term vacation rental, invest in a future retirement home, or put together a portfolio of diverse properties across the central Florida market.
There are some pitfalls and risks involved too, and it can be overwhelming to identify the right opportunities and make the right choices. Even experienced investors look for expert opinions and professional help when they’re buying a new property.
At R. Russell Properties, we have a lot of experience in the Orlando real estate market. We help investors at every level identify good rental homes and calculate what they can expect to earn and spend depending on the market, the tenant pool, and the property itself.
Today, we’re sharing some important things to think about when you’re buying Orlando investment property.
Buy the Right Property in the Right Location
Location is an important part of your investment success. Homes in desirable neighborhoods and close to good schools, commuter routes, parks, and recreation are going to rent for more than homes in remote or busy areas. The location also has an impact in how the home is managed. Take a look at up and coming neighborhoods in and around Orlando, including Altamonte Springs, Apopka, Lake Nona, Kissimmee, Winter Garden, Winter Park, Sanford, and Oviedo.
That’s a lot of locations, and there’s a lot of inventory. If you’re overwhelmed, talk to a local Orlando property management company about where the best deals are for rental properties. You want to consider vacancy rates and retention rates. Focus on areas with higher rents.
Remember that you’re buying an investment property, not a home you’re going to immediately occupy. Think through the lens of a tenant. High-end appliances and granite counters are great, but are they necessary? Focus on move-in ready properties as well. Homes needing work can be attractive because they cost less, but the amount of time it takes to renovate and prepare them for the market will only delay the amount of time you’re earning rental income.
Crunch Your Numbers Before you Buy
A lot of investors are eager to jump into a deal before they really run the numbers. But, you need to do your math because there are financials that are more important than the purchase price. For example, you’ll have to know how you’re planning to pay for the investment. What kind of leverage are you going to have and how much cash are you able to put down right now? Make sure you can meet any lending requirements and have a plan in place for how you’ll finance your real estate purchase.
Measure your expected rental income against your anticipated expenses. You’ll need to factor in the mortgage payment, insurance, and taxes. But, you’ll also want to budget for maintenance and vacancy. Don’t forget to include your property management fees and other professional services.
Work with Orlando Property Management Experts
No successful investor does everything on their own. You don’t have to be an expert on every part of the process when you’re willing to surround yourself with specialists. You’ll want to work with a great real estate agent who can negotiate the purchase price and walk you through the closing. You’ll want a reliable inspector and a smart accountant and a good insurance agent. You’ll also want an Orlando property management company that can advise you about rental values, repair needs, and earnings potential.
We can provide a lot of support and help, so please contact us at R. Russell Properties. We know buying Orlando real estate can be overwhelming, and we’re here to help you navigate the process.