Are you looking to invest in Orlando, Florida rental properties?
Real estate investing is a good way to move forward should you wish to create a source of passive income. Not all real estate markets are equal in terms of investment potential, though.
You want to find a place that checks most of the essential boxes such as sustainable rental demand, healthy economy and high quality of life. Orlando fits the bill in many aspects, raising some serious interest from prospective investors.
In the following paragraphs, we’ll go over the major factors behind the suitability for investments in this Florida area. You’ll learn why Orlando and its immediate surroundings have brought in remarkable real estate investment dollars in recent years.
1. Outstanding Rental Income Potential
You have three major avenues to take when it comes to rental income in Orlando. The resort properties are the first option. Many investors are quick to discover the value of this investment type.
Professionally-managed resort units benefit from the vacation home boom that is bound to make a strong comeback post-2020.
You also have the option of investing in regular short-term rental properties. These rental units come with all the amenities tourists expect from their holiday homes. Orlando is a tourist hotspot, giving this strategy the necessary long-term viability.
Of course, you may always opt for the regular long-term rental strategy. The local rental market is booming. In fact, the average monthly rental income will likely reach $2,000 in the coming years.
2. Healthy Local Economy
The lifeline of Orlando’s economy is tourism and conventions. The local infrastructure supports a sustainable flow of visitors throughout the year. Just consider the ubiquitous attractions and places to stay in and around the city.
Tourism isn’t the only thing at play here. The local tax policies favor business investments, incentivizing the influx of companies to Orlando. The economy keeps on growing because these enterprises create new jobs in the region.
A booming job market is tied to population growth. Looking back at the last decade shows that Orlando’s population numbers grew by more than one-fifth in this period. More jobs will open in the coming times, allowing for further expansion.
3. Affordable Real Estate Investments
After all this talk about a booming economy, it may come as a surprise that there are great property deals available on the local market. You can find relatively affordable price points, especially compared to huge cities like Los Angeles and Miami.
Since the market has more affordable median property prices, you may find yourself getting more for your dollars in Orlando than in comparable areas. Since the market is hot, you’ll be able to sell your property more easily later on.
4. Huge Tourism Sector
Tourism has an incredible role to play in the local economy. You are able to find numerous first-rate Florida tourism hotspots right there in the Orlando area. Just consider the following sought-after attractions:
- Universal Studios Orlando
- Walt Disney World (Magic Kingdom, Epcot, Hollywood Studios, Animal Kingdom)
- Discovery Cove
The short-term rental potential in Orlando is huge. Close to 80 million annual visitors have contributed to the local economy in the previous years. Not everyone prefers big resorts or hotel accommodation. A considerable number of people seek out Airbnb rentals and similar services.
5. Great Local Climate Conditions
Another target group to keep in mind is the snowbirds arriving from up North. No wonder, the local weather is great! The atmosphere outside feels tropical and warm for most of the year.
As an investor, you could consider targeting snowbirds as your rental marketing strategy. These people are going to periodically stay in Orlando during the bone-chilling times of the year.
6. Attractive Neighborhoods for Investors
The City of Orlando has a stunning variety of neighborhoods. Investors are spoilt for choice. As such, pick a proper community based on your target group and related amenities. Here are some examples for inspiration:
If you are looking to invest in a neighborhood with many locally-owned businesses, Thornton Park is promising. This community hosts many events throughout the year. Every week, its residents can visit the Sunday Farmers Market full of fresh produce, pastries and crafts.
The area of Kirkman South is all about walkability. You can find numerous things to do, all within reasonable walking distance. The neighborhood is big on dining spots, nightlife venues and shopping.
This is an attractive community to invest in if you want the property to be situated in a highly desirable area.
This is another neighborhood that has a lot going for it. It’s a prime choice for young professionals as many of the city’s business is conducted in the downtown area.
However, Downtown Orlando is also a good option for people who want to live around world-class dining, entertainment and a partying scene.
Atlanta Magazine named Audubon Park as the city’s “Most Talked About Community.” The local culture is based on sustainability and organic food. Farmers and foodies live side-by-side in this eco-oriented community.
It’s a great place for families with children, too. The area is served by Orlando Science Charter School and Audubon Park Elementary School, among others.
The Bottom Line: Investing in Orlando, FL Real Estate
Orlando offers excellent value for property investors. The local rental market shows strong demand and resilience in tougher times. The pillar of the city’s economy is tourism, with more than 75 million people visiting Orlando on annual basis.
As a real estate investor, you’re able to pick from a variety of neighborhoods. Some of the notable areas are Kirkman South, Thornton Park, Audubon Park and Downtown Orlando.
However, if these don’t suit your needs, there are dozens of other potentially high-ROI communities in Orlando and its surroundings as well.