Seeking Advice and contacts for Orlando

[Noah Yashinsky]

Hey guys,

Is there still cash flow opportunity in Orlando or is it tapped out ?

I'd open to connecting with a investor focused agent that really knows Orlando well. 

[Chris Grenzig]

Quote from @Noah Yashinsky:

Hey guys,

Is there still cash flow opportunity in Orlando or is it tapped out ?

I'd open to connecting with a investor focused agent that really knows Orlando well. 

@Noah Yashinsky You can definitely cash flow, but I don't think it's anything spectacular right now. You might be able to get a better yield by finding a value-add project or a BRRR type property, but the market rate stabilized is 4-6% probably.

Just be careful of insurance right now, it's been going up and seems to have stabilized, but it's still all over the map depending on the specific property and who is doing the insurance. Don't believe what anyone tells you besides your insurance agent/broker and even then verify the info they're telling you, don't go off of the owner's previous insurance numbers.

Also, be careful that in-place rents aren't already at market or above market slightly. Plenty of areas of FL have seen record levels of new supply hit the market which has impacted rental rates, either making it flat for the past 1-2 years or even dropping some. Be extra diligent on running your comps and don't rely on anyone else to tell you what it will rent for. Even if you're talking to a property manager who should be the right person to talk to and tell you what the correct rental rates are, still double check what they're telling you is accurate. 

If you can find a deal that cash flows decently now, I do think we'll start to see 3%+ per year organic rent growth again sometime in the next 2-4 years, since new construction starts have been very low the past 2 years so new supply coming online is going to drop a lot in the coming years. 

If I can ever help on the PM side let me know, but we also buy/own multifamily properties so happy to help on the ownership side too if possible.