Newbie wanting to take a swing at Orlando rentals. Please help me
New to Real Estate · MD · Member since 2021 · 1 post · 0 votes
Newbie wanting to take a swing at Orlando rentals. Please help me
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Tyler GibsonBusiness Member
Real Estate Agent · Orlando, FL · Member since 2017 · 1k+ posts · 2k+ votesQuote from @Xavier Harris:
Hello,
After taking a couple vacations to Orlando, FL by staying at airbnbs, I have gained interest in real estate investing. I've been considering it for a year now and I would love to buy a place or (or more) within driving distance of orlando attractions to rent out, but I lack experience in real estate so I'm not sure how to get started. Currently I live in an apartment and have a comfortable (but boring) 9 to 5 job and have around 90k just sitting in savings accounts. I'd love to be successful enough in real estate where it can replace my current job. I know that may take a long time, but I would like to at least give it a try instead of doing nothing.
What are some steps I should take to get started on this?
Would it make more sense to live in the area that I'm investing in? Or can a lot of this be started from where I am now?
Things I am aware of so far is getting a property management company to take care of the property, but that's about it. Any advice and help is welcome.
This post is a great start! All I go with many of the other people have said one of the first things you'll want to do is educate yourself on the different components of this type of investing and then look for local professionals that can help you fill in any gaps.
5 Replies
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes3y
Quote from @Xavier Harris:
Start with education. You have to know what constitutes a good investment vs. a bad investment. Not every property is good. You also have to understand this is still a peak market with a good chance that property values will decline 10% or more in the next 12 months and a lot of people jumped into the short-term rental market during the last two years, so this may reduce the demand and potential income.
1. Start with BiggerPockets Ultimate Beginners Guide (free). It will familiarize you with the basic terminology and benefits. Then you can read a more in-depth book like The Book On Rental Property Investing by Brandon Turner or The Unofficial Guide to Real Estate Investing by Spencer Strauss.
2. Get your finances in order. Get rid of debt, build a budget, and save. The idea that you can build wealth without putting any money into it is a recipe for disaster and the sales pitch of gurus trying to steal your money. A wise investor will not try to get rich quick with shortcuts. If you can't keep control of your personal finances, you are highly unlikely to succeed in real estate investing. Check out my personal favorite, Set For Life by Scott Trench , or The Total Money Makeover by Dave Ramsey.
3. As you read these books, watch the BiggerPockets podcasts. This will clarify and reinforce what you are reading. You can hear real-world examples of how others have built their investment portfolio and (hopefully) learn to avoid their mistakes.
4. Now you need to figure out how to find deals and pay for them. Again, the BiggerPockets store has some books for this or you can learn by watching podcasts, reading blogs, and interacting on the forum. There is a handy search bar in the upper right that makes it easy to find previous discussions, blogs, podcasts, and other resources. BiggerPockets also has a calculator you can use to analyze deals and I highly recommend you start this as soon as possible, even if you are not ready to buy. If you consistently analyze properties, it will be much easier to recognize a good deal when it shows up. Find Brandon's videos on YouTube for the "four square" method of analyzing homes and practice. It doesn't take long to learn how to spot a good deal.
5. Study the market. You can learn to do this on your own or get a rockstar REALTOR to lead the way. I highly recommend a well-qualified REALTOR that works with investors and knows how to best help you.6. Jump in! Far too many get stuck in the "paralysis by analysis" stage, thinking they just don't know enough to get started. The truth is, you could read 100 books and still not know enough because certain things need to be learned through trial-and-error. You don't need to know everything to get started; you just need a foundation to build on and the rest will come through experience and then refining your education.
You can build a basic understanding of investing in 3-6 months. How long it takes to be financially ready is different for everyone. Once you're ready, create a goal (e.g. "I will buy at least one single-family home, duplex, triplex, or fourplex before the end of 2019") and then do it. Real estate investing is a pretty forgiving world and the average person can still make money even with some pretty big mistakes.
The DIY Landlord Book4.7243 Reviews - 3yShawn McCormickPro MemberRealtor · Central Florida-Orlando · Member since 2014 · 1k+ posts · 894 votes
@Xavier Harris Welcome to the forums and congrats on taking the first steps. I am local to Orlando and have helped dozens of investors figure out what is right for them in our market. For many, STR are the way to go here as we are built for it long term, not just jumping on the latest bandwagon area. Others see the long term benefits of student housing or long term rentals that there is a strong demand for and continue to appreciate.
I would just soak up some education and see what fits in your wheelhouse of understanding how they work (STR, LTR, flipping, notes, PML or whatever!) and then join your local real estate investor meet ups to get some real world experience and knowledge. ( I like that better than podcasts, but any source that works for the way you learn).
Once you figure out your risk threshold and eliminate the shiny objects so you can focus on one or two types of investing, maybe plan some trips to Orlando to learn more about what areas offer what you want. Start building a team of like minded people locally that you can trust and lean on for information. Just know there are no short cuts to be successful at this.
Best of luck to you!
- Property Manager · Kissimmee, FL · Member since 2019 · 446 posts · 266 votes3y
Hello @Xavier Harris! Congrats on educating yourself and others have already provided great advice on this thread. If you do decide you would like to explore STR investing in Orlando, we are happy to help you crunch the numbers and evaluate different Disney area communities/property types that may be a fit for you!
- 3yTyler GibsonBusiness MemberReal Estate Agent · Orlando, FL · Member since 2017 · 1k+ posts · 2k+ votes
Quote from @Xavier Harris:
Hello,
After taking a couple vacations to Orlando, FL by staying at airbnbs, I have gained interest in real estate investing. I've been considering it for a year now and I would love to buy a place or (or more) within driving distance of orlando attractions to rent out, but I lack experience in real estate so I'm not sure how to get started. Currently I live in an apartment and have a comfortable (but boring) 9 to 5 job and have around 90k just sitting in savings accounts. I'd love to be successful enough in real estate where it can replace my current job. I know that may take a long time, but I would like to at least give it a try instead of doing nothing.
What are some steps I should take to get started on this?
Would it make more sense to live in the area that I'm investing in? Or can a lot of this be started from where I am now?
Things I am aware of so far is getting a property management company to take care of the property, but that's about it. Any advice and help is welcome.
This post is a great start! All I go with many of the other people have said one of the first things you'll want to do is educate yourself on the different components of this type of investing and then look for local professionals that can help you fill in any gaps.
- Orlando, FL · Member since 2014 · 93 posts · 35 votes3y
@Xavier Harris, congratulations on your venture into real estate investing. I started in 2013 and now invest in real estate full-time. I have several rentals in Orlando that I manage myself.
Before jumping in, take the time to educate yourself. You are already in the right place; I consider Bigger Pockets to be the best online resource for learning real estate. Listen to as many relevant podcasts as you can; that being said, be always mindful that many in real estate are constantly trying to "sell you" something. As a real estate guru once told me, "real estate is the only business you can make more money talking about it than actually doing it". Keep your checkbook in your pocket while you learn.
Orlando is an excellent market to invest in real estate for a number of reasons including the weather, diversified job market and entertainment options galore.
My real passion is helping people, so if you want to learn more about how to start in this local market, feel free to message me, I would be happy to share with you my journey on how I got started, and what to look out for in Orlando.
Happy investing!
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