Updated 15 days ago on . Most recent reply
Long Term Buy & Hold
For the Central Florida investors in here, I’d love your perspective.
I often speak with investors who are interested in purchasing new construction in areas that are still developing or farther outside the core Orlando rental markets.
On one hand, I understand the appeal: new roof, new HVAC, new appliances, builder incentives, and hopefully less maintenance upfront.
On the other hand, I tend to look closely at tenant demand, lease-up time, rental competition, and true all-in cash flow.
In areas like Downtown Orlando, Lake Nona, Oviedo, and other more established submarkets, demand is often driven by proximity to major highways, hospitals, job centers, the airport, strong schools, and lifestyle amenities.
In more outer-ring or developing areas, the investment can still make sense, but I wonder how much additional risk investors should factor in for new construction supply, longer lease-up periods, pricing pressure, and thinner margins once property management, vacancy, leasing fees, and maintenance reserves are included.
For those of you actively investing in Central Florida:
How are you underwriting newer builds in developing areas compared to more established rental markets?
Are you seeing strong tenant demand in outer-ring suburbs, or are lease-up times and rental competition becoming more of a factor?
What pros, cons, or deal-breakers do you consider before buying new construction as a long-term rental?