New to Real Estate · FL · Member since 2022 · 3 posts · 4 votes
Hi everyone! I am a total newbie to BP and real estate in general. I am currently living in Orlando, FL (I rent and like this due to the flexibility it gives me and my partner).
I've set a goal for myself to buy my first investment property (buy and hold to rent out) in Orlando area by end of 2022. I am also very interested in learning more Airbnb option.
Longer term (5-10 years) my goal is to have enough steady passive income from real estate so that my 9-5pm job is optional. While I enjoy my current career path I would like create a bit more freedom and ownership of my time.
Welcome to BP @Stephanie Romo. I am in a similar boat as you are. I also want to use real estate to make my W2 job optional. It may be defficult to find anything good in Orlando, unless you house hack. House hacking may be a great option for you. I found my first property in Volusia County back in February. I would widen your search to Polk County (Winter Haven, Lake Wales, Lakeland, etc.), Marion Count (Ocala), and Volusia County (Deland/Deltona area). Metro Orlando will be very expensive and will have a lost of competition. But depending on where you look, the rents will probably be higher as well. I hope this helps.
@Stephanie Romo find a time machine and go back sometime between 2011 to 2018 and buy something if you want to make money buying and renting in Central Florida.
Welcome to BP @Stephanie Romo. I am in a similar boat as you are. I also want to use real estate to make my W2 job optional. It may be defficult to find anything good in Orlando, unless you house hack. House hacking may be a great option for you. I found my first property in Volusia County back in February. I would widen your search to Polk County (Winter Haven, Lake Wales, Lakeland, etc.), Marion Count (Ocala), and Volusia County (Deland/Deltona area). Metro Orlando will be very expensive and will have a lost of competition. But depending on where you look, the rents will probably be higher as well. I hope this helps.
Orlando is a great area but expensive, try expanding your search like it was mentioned above. I live in Ormond (to far for you) but I know of a few people who live in/near Deland and it’s not a terrible drive to Orlando. Lake Mary is a great area and just “outside” of Orlando.
Go West! Areas west of Orlando have some hot pockets, Clermont, Groveland and Mascotte. Another choice is to buy some land and sit on it until areas around the land start to grow, now you can either build on the land or sell it for close to twice what you paid for it. Lots of options comes with the massive growth we are seeing here in central florida and SWFL.
@Eric Starks@Jason Scavilla@David Vanlandingham Thanks for all this advice! It is super helpful. I am definitely open to widening my search.. and will do so. Psycologically, I like the idea of buying my first in cenntral florida area as I could atleast drive to it, see it etc. really understand the process "hands on". In the future I would be open to buying in other markets outside of the central florida area (out of state too). I am open to really any market that is growing fast.
@Eric Starks@Jason Scavilla@David Vanlandingham Thanks for all this advice! It is super helpful. I am definitely open to widening my search.. and will do so. Psycologically, I like the idea of buying my first in cenntral florida area as I could atleast drive to it, see it etc. really understand the process "hands on". In the future I would be open to buying in other markets outside of the central florida area. I am open to really any market that is growing fast.
That's a great plan you have and I would recommend the same plan you are doing. My furthest rental property is 35 minutes away and my closest is 20 minutes away.
@Stephanie Romo being open to other markets mentally is a big win! I'm in Winter Garden and in the last 9 months the property values have made it more difficult to find a good deal as far as cash flow. There are certainly appreciation plays but those require a chunk of change in Orlando.
Welcome to BP and the big world or RE investing. As other have already mentioned, its a little bit of a tough market right now, but with interest rates going up, that should help stabilize things a bit later this year and calm down some of the bidding wars.
Depending on what you want out of your investment (i.e. just paying for itself while it appreciates, get a little cash flow to cover repairs etc, strong cash flow so you can pay down debt quicker....will help determine what you should be looking at. Also your budget will dictate where you can look and size/age of home and some other factors will determine how well you can cash flow. There are calculators on BP and other places you can practice with to get comfortable with analyzing properties so when you are ready, its not so daunting.
I actually specialize in STR in the Orlando area and that is a whole nother conversation (which I'm happy to have) The cash flow is far more unpredictable than a steady long term rental, but the rewards can also be quite a bit better.
Best of luck to you. I'm in Clermont, but work all over Central Florida and belong to CFRI which may be a good place to start networking for you.
@Stephanie Romo - what types of assets are you looking to buy (SFH, MFH, STR)?
On the long-term rental front - cash flow is challenging, but not impossible. Growing your search range is key this market - Ocala, Leesburg, Winter Haven, Lakeland, etc are all hot rental markets and typically more affordable than what you will find in "Orlando" and immediate surrounding areas. Also, being willing to take on distressed properties and muscle out the rehab will help you filter out some of the competition from the hedge-fund investors who are willing to pay top dollar (typically above asking price) for rent-ready properties in these markets.
Rents are growing at 8% or more YOY in these markets. So, while it might not cash-flow today, the marginal deals may start looking good in year three. In short, if you set your expectations to buying properties that cover their mortgages, you may find cash-flow in the near future. Use your BP calculator and look out over time. Your mileage my vary.