Orlando long term rental

[Prithvi Raj Sendi]

Hello BP members,

I live in Miami and I'm considering purchasing a long-term rental property in Orlando that will generate positive cash flow. I’m open to options, whether it’s a single-family home, duplex, or multiplex, as long as it offers some kind of positive cash flow. My budget is between $400k and $500k. Given the expertise of realtors and investors in the Orlando area, could you please provide some insights on whether Orlando is the right market to look into for my goals? 

Thank you!

[Shawn McCormick]

hi @Prithvi Raj Sendi I would be happy to talk thru the market here in Orlando. Cash flow has not been easy to get in the last few years due to the appreciation home saw due to the Pandemic.;

I think you'll find this in any big metro in Florida. Insurance and taxes are a big part of the equation too. I believe one way to help combat that is buying a newer home or even new construction (which most are offering great incentives right now). You'll be able to hedge your capital expenses due to having warranties and all of your systems being new. 

We can dive a little deeper on your needs on a call if you like. 

Best of Luck!

[Chris Grenzig]

@Prithvi Raj Sendi I would tend to agree with @Shawn McCormick, he knows his stuff. We look for multifamily 10-80 units in Jacksonville and Orlando and it's tough to make deals pencil right now for all the reasons Shawn said. However, I do think if you can hold out for 1-3 years you might see rates drop a bit and insurance drop a bit, and I feel pretty confident we'll start seeing 3%+ organic rent growth per year in the next 2-4 years again. So you might get a property at a slight discount to values in the next couple of years, but it might not "pencil" great on paper today. Just depends on your strategy. Happy to help look at properties in the Orlando area too and we do manage for other owners too.