Investor · San Diego · Member since 2011 · 56 posts · 11 votes
Hello, I would like to purchase an investment property within 200K price range in Florida, and I am exploring Orlando area . I prefer newer homes in good neighborhoods that can generate good cash flow. I would appreciate any suggestions on what neighborhoods I should explore.
Hello, I would like to purchase an investment property within 200K price range in Florida, and I am exploring Orlando area . I prefer newer homes in good neighborhoods that can generate good cash flow. I would appreciate any suggestions on what neighborhoods I should explore.
Payal,
How old can you go and still fall into the newer classification? New construction in the $200k range would take you out of Orlando proper into the outskirts.
The first time homebuyer homes with good schools would be a bit in lower price range and might mean an older house but will have better cashflow.
You may have luck near the Lake Nona area or in Avalon Park. Both are very desirable neighbourhoods that may command a bit more in rent and have more recent construction.
Hello, I would like to purchase an investment property within 200K price range in Florida, and I am exploring Orlando area . I prefer newer homes in good neighborhoods that can generate good cash flow. I would appreciate any suggestions on what neighborhoods I should explore.
Payal,
How old can you go and still fall into the newer classification? New construction in the $200k range would take you out of Orlando proper into the outskirts.
The first time homebuyer homes with good schools would be a bit in lower price range and might mean an older house but will have better cashflow.
You may have luck near the Lake Nona area or in Avalon Park. Both are very desirable neighbourhoods that may command a bit more in rent and have more recent construction.
Investor · Howey in the Hills, FL · Member since 2015 · 24 posts · 18 votes
11y
@Payal Z. on the Avalon Park and Lake Nona areas. My first rental was in Avalon Park and I had no problems finding reliable tenants. Being close to UCF and the new medical center didn't hurt either. There are also areas in Kissimmee that will meet your criteria that are closer to Disney and can allow you to tap into the vacation rental market if you choose to do so.
@John Kent - I prefer properties 1985 and later in order to minimize maintenance hassles.
There are lots of options within that age range. I recommend to customers that they get a landlord home warranty policy with a single family house. Just bump the rent a few dollars per month to partially offset the cost. Advertise that the property is under warranty. And instruct your property manager to place service calls to the warranty company. The expensive guys will come out to do the work and it will cost less than the cheap guys in most cases.
Professional · Orlando, FL · Member since 2015 · 3 posts · 2 votes
11y
Payal,
You can look into Southchase and Deerfield. They are in zipcode 32837. Me and my family own and rent many homes there. We rent our homes there within a few days of listing them. In my opinion, zipcode 32837 is by far the best based on price, location and proximity to amenities. Would you like me to send you some listings with projected ROI?
I've recently heard some stories about alligators in Orlando area. Does anyone have pointers on how I can avoid buying a property near alligators?
If I move to CA can you guarantee I won't experience an earthquake?
Be rest assured gators are everywhere. Every lake around Orlando has them. Even in the storm drains. If you drive over lake Monroe just north of Orlando you can see them by the dozen swimming. Even the lakes around the airport have them sunbathing.
Just stay clear of any water/lake big or small and you will be fine. There's plenty of places to invest where water doesn't come into play. I lived in Orlando for 12 yrs. it's a great place to live and invest. Good luck.
I've recently heard some stories about alligators in Orlando area. Does anyone have pointers on how I can avoid buying a property near alligators?
Hahaha... This made me laugh.
First of all, this is Florida. Alligators are everywhere. Especially near water. Secondly, I wouldn't worry about them. They won't bother anyone unless provoked. The only time they ever make the news is when some old lady from up north walks her tiny dog near the water and it gets eaten by a gator. Floridians know better than to do that.
If you're still worried, then don't buy anything near water. Lakes, ponds, wetlands, retention ponds, rivers, etc. That being said, gators often travel between bodies of water, and I've seen them miles from the nearest pond. So there's no guarantee.
But seriously, gators should be the least of your worries when investing in Florida.
Haha, I am a bit of a wimp when it comes to wildlife. Which is sad cause I do love tropical climates but just not the insects, reptiles and other creatures that come along with it. I need to try to separate my feelings towards them from my investment decisions.
Investor · Cedar Park, TX · Member since 2015 · 26 posts · 12 votes
11y
BTW just to get you going. I've even encountered a couple on the roadside despite the fact they prefer water. But in my case they were more scared of me. Fascinating creatures. You should also know there are plenty of snakes too, but with you living in CA that's business as usual with the infamous rattlers.
Investor · Longwood, FL · Member since 2015 · 2 posts · 0 votes
11y
Hi Payal!
My name is Paul Irumudomon. I am an investor as well. There are a lot of property out here but everything depends on the return you would like to receive. The general rule of thumb here is a 10% capitalization rate. 8-9% for nice neighborhoods. 15% for decent neighborhoods. 6% you are essentially parking your money. At 15% + your either found an amazing deal or you're in a war zone. Luckily Orlando is pretty safe. What type of return are you looking for? I have been looking at duplexes lately they allow one to boost their yields provide relief during vacancies.
Investor · San Diego · Member since 2011 · 56 posts · 11 votes
11y
@blanchard Ross - that does sound really scary! I have no idea how people survive among these creatures. We do have snakes in California but I've never heard of any in the city. You might encounter one in the hiking trails though.
Investor · San Diego · Member since 2011 · 56 posts · 11 votes
11y
Paul, I am looking for the best returns I can find given my criteria of good professional neighborhood and newer properties. My understanding in most places is multifamily properties tend to be older. What's your thoughts on it?
Rental Property Investor · Orlando, FL · Member since 2016 · 76 posts · 19 votes
10y
@Shan K. property taxes differ based on neighborhood here. You can find some lower than $500 and others higher than $2k, annually. The average "decent" neighborhood will run at about $1200+.
Real Estate Agent · Orlando, FL · Member since 2008 · 551 posts · 159 votes
10y
@Shan K. property taxes vary by district. We also have several exemptions which can lower the tax amount based on who is on title. In my area the County Tax Appraiser has an estimate tool on the website for estimating the rate on a new purchase. I am originally from the North East where taxes require sacrificing your first born. From my perspective our rates are generally reasonable.
Real Estate Brokerage/Vacation Homes/Short Term Vacation Home Rental Marketing · Orlando, FL · Member since 2013 · 159 posts · 127 votes
10y
Payal -
I specialize in short term rental vacation homes near Disney World. If you would like to investigate them, contact me, and I will send information to you about them along with pro forma statements on homes in the $200K price range.
Real Estate Agent · Orlando, FL · Member since 2016 · 139 posts · 80 votes
10y
@Payal Z. Have you considered vacation rentals? In the right neighborhoods, they're generating 3-4 times the amount of rental income that long term rentals are and the good news is that there are some really good management options here so it can be a hands off investment. You just have to be really careful which neighborhood you purchase in because they're not all the same. Two neighborhoods right next to each other can be bringing in entirely different sets of income. If you need any guidance feel free to reach out!
Investor · San Diego · Member since 2011 · 56 posts · 11 votes
10y
Thanks everyone. I already purchased a property in Winter Garden few months ago, bordering Windermere and am very happy with it so far. I am not actively looking for the next property at the moment, but if I find a good deal, I am definitely open to it. I am trying to avoid short term rentals, as I've heard from multiple sources that after including the vacancy factor and management costs, the return is very low. Thanks!
Real Estate Agent · Orlando, FL · Member since 2016 · 139 posts · 80 votes
10y
@Payal Z. Congrats! That's where I live. Such a great area and definitely a smart place to invest! It's just very expensive right now over here if you're just getting into the market and the school zones on the North side of 429 are not the best so keep that in mind when you go to sell, it's going to be something buyers consider. I have to send my daughter to private because of how bad the middle and elementary are getting despite how great this area is.
Short term rentals here in Orlando actually generate three times the amount of income as the LTR's do, not sure who told you that but WG/Wind is a great area to buy and hold if you didn't get in too late in the game. It's currently at its peak.
Developer · Charlotte, NC · Member since 2015 · 82 posts · 22 votes
10y
All great points. Go Orlando! Expect RE taxes to generally be between 1.5% to 2% of value. Be wary of CDD's which is like an HOA but you pay it in the RE taxes. You'll see them in communities with a lot of extra amenities.
Short term rentals are great but it's a boom/bust market. Concentrate on paths of growth. Orlando is moving NW towards Clermont, SW away from Disney, SE towards Lake Nona.
Rental markets are very diverse including service workers, Millenials, college students, traveling professionals and various immigrants.
Multifamily properties are very hot but mostly at the investment level (200+ units). Smaller units are tough to come by.
You'll find great deals in Orlando and many of the surrounding communities including Clermont, Apopka, Maitland, Altamonte Springs, Winter Springs, St. Cloud, Kissimmee and Championsgate along the outer beltways (SR417/SR429).
Investor · San Diego · Member since 2011 · 56 posts · 11 votes
10y
@Erica Muller - When you say that short term rentals generate 3 times the income, did you account for vacancy factor and management costs? Can you please share an example of some numbers showing a typical STR in today's market, including vacancy factor and management costs, etc? Thanks!