How to know where to invest in real estate

Question

Hello there! I’m new to the whole real estate investing world. I am planning to move to Orlando but I was wondering how to know if Orlando is a good place to invest. I’ve found homes for very cheap in Orlando but Im also thinking.. maybe it’s because the market isn’t that great.

Raphael Abreu · Answer

Hi Gilvina! In my honest opinion the state of Florida, especially in Orlando is a great location to invest in.  I'm a realtor in New York and it seems like all of my friends and family are either moving to Orlando or considering moving there someday.  Florida is a no state income tax state which incentivizes businesses to move down there and it is very enticing to folks who don't want to give more money to Uncle Sam.  Most of Florida is landlord friendly which is going to be very important if you are looking to invest.  The job growth and population growth is also up the charts.  Last time I checked 19 of the Fortune 500 companies are headquartered there too.  They have a pretty robust economy and I think it'd be great to invest in Orlando.  I actually have a friend who is a Realtor/Investor in Orlando! Her name is Tanin & she would be more than happy to help you reach your goals. I'll be shooting you a dm.

Aj Parikh · Answer

You can connect with Real Estate investors through BP in Orlando and find out which zip codes are worth investing

William Rojas · Answer

Hey @Gilvina Stephanie it all comes down to what your goals are and what type of home works for you...

generally there are desirable areas for rental that can generate you a good cap over the long term...

So it all depends what kind of property your looking for and what your ultimate goal is..you can easily find this out by working on a spread sheet and seeing if it works out..

you May want to cash flow monthly or you maybe simply fine with breaking even.. I think the first step is determining goals and then searching for that perfect property..Now where you decide to purchase would depend on the knowledge of the agent because there are areas where it seems you may get a hugeeeeer cap rate but you may end up spending more money on eviction cost or maybe even repair on a older home...

Would be happy to give you guidance on it..

Shawn McCormick · Answer

Hi @Gilvina Stephanie  Welcome to Orlando (almost!). I have lived here twice, once in my early 20's and then came back in my mid 30's and have been here ever since. I have seen all the growth in the real estate market here and have watched many, many people build wealth in real estate. Florida is know for a couple of things...tourism and great real estate.

Orlando has pros and cons depending on what you want out of your investment. We do have a lot of lower paying tourism and hospitality jobs (that is good as a landlord, lots of renters), and lots of investors (good, because many of them are from out of the area and often don't hold them as long), it has tremendous growth (10,000 baby boomers are turning 65 every DAY) and now that people can work from home, more and more are moving here. No state tax, beaches, weather, theme parks...the list is endless.

I would be happy to talk thru your strategies and hesitations on the market here. And would really love to hear where these really cheap houses you are talking about are!!

Reach out anytime!

Will Fraser · Answer

Hi @Gilvina Stephanie, this is a very big question and the simple answer is:  it really depends on what you want out of investing.  If you are looking to replace your income ASAP and that's THE single determining factor then buying very inexpensive homes with high Rent to Value ratios could be just the ticket.  If you want to buy properties that could be something handed down from generation to generation of your family, then that's a whole different set of buying criteria.

So, before talking where is good to invest, dig in deep and get clear on why you want to invest and what you want or need to achieve through real estate investing.  After you have a good feel for this it will be much less nuanced to determine where is good to invest.

How to know where to invest in real estate

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