Orlando to remain a strong rental market

Orlando to remain a strong rental market

Real Estate Broker · Apopka, FL · Member since 2017 · 492 posts · 528 votes

This article was shared on one of the local Facebook groups I'm a part of. It's obviously written from the doom and gloom "the rent is too D*mn high!" Perspective, but from the investor side it overflows with positive. Will the market correct, slow, stall in 2019? Nobody can call it for sure. But the overall demand to live somewhere that has 17 available units for every 100 renters means to me that there is at least no true crash in demand on the horizon, regardless of what values do or don't do. Articles like this send my brain into overdrive thinking of all the potential for multi family build to hold, basic prefab homes to fill an affordable housing gap, and other projects a market like this could support. Despite a crash in values 2008-2012, my area has steadily grown in population through it all. Appreciation (recovery) in many local areas has been over 40% from 2012-2018, so if values dip again I'd be confident to recommend holding through it. Cash flow seems like it would be unaffected. Rent has no downward pressure currently other than tenants income. That may not be increasing but I don't think it's going backwards either.

https://m.orlandoweekly.com/Blogs/archives/2018/08...

Do you all get the same positive stability vibes from this "all is terrible in housing" article? What are your thoughts on overall demand for an area counteracting the risk of a short term market hiccup? Of course building large apartment complexes is a big endeavor, but if there are a lack of apartments, I bet renters would love some nice quads nearby built by smaller players. Just food for thought, I'm a relative newbie compared to many experts here so feel free to agree/disagree strongly.

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Rental Property Investor · Orlando, FL · Member since 2015 · 14 posts · 5 votes
8y
@Russell Holmes thanks for sharing the article and I agree with your thoughts. Seems like the writer of the article is pretty angry with Orlando housing market. He wrote a couple of articles about the topic, one titled “Orlando Housing Market is Complete Horseshit Right Now.” I thought that was pretty funny.
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  • Real Estate Broker · Apopka, FL · Member since 2017 · 492 posts · 528 votes
    8y

    And I realize there are some major forces at play in massive development projects that are the basis for these stats of less apartments. However, I feel like development has followed the money to bigger and bigger projects, I'd do the same if I had massive capital that I grew through the recovery. I feel like in a market of $1800 apartments and $350k 'entry level' houses, there would be a huge demand for $1200-1400 rentals and sub-200k new homes, even if minimal in sqft and design. I feel people will give up neighborhood amenities and excess sqft before they'll sacrifice bedroom count. Time on market of mere days on cheaper smaller homes supports that thinking. Deals on the MLS are few and far between, the main reason I've shifted my marketing focus to finding sellers, depending on the property for whether it's an MLS listing lead or a property to present to my buyers as a pocket listing. If I had the capital, I feel like I could build the properties my buyers are looking for and make a profit while giving them a good deal. (Spoiler alert, I don't have the capital to do so currently). I almost feel as if there is an opportunity opening for smaller investors to develop an acre or two at a time since builders seem to want 25+ acres to even consider, and then decide to build $300k houses for higher profits.

  • Tyler GibsonBusiness Member
    Real Estate Agent · Orlando, FL · Member since 2017 · 1k+ posts · 2k+ votes
    8y
    @Russell Holmes I also read this article and thought the exact same thing.
  • Rental Property Investor · Orlando, FL · Member since 2015 · 14 posts · 5 votes
    8y
    @Russell Holmes thanks for sharing the article and I agree with your thoughts. Seems like the writer of the article is pretty angry with Orlando housing market. He wrote a couple of articles about the topic, one titled “Orlando Housing Market is Complete Horseshit Right Now.” I thought that was pretty funny.
  • Real Estate Broker · Apopka, FL · Member since 2017 · 492 posts · 528 votes
    8y
    @Philip Dalhausser haha that's pretty funny! I hadn't dug into his other writings much but that sounds about right based on the tone of this one. Maybe he's a disgruntled renter?
  • Rental Property Investor · Orlando, FL · Member since 2018 · 301 posts · 354 votes
    8y
    @Russell Holmes thanks for sharing, yeah for us investors. I’m saving up capital and keeping an eye out for deals to buy our next rental. It is interesting to think if buying land and building MFH.
  • Real Estate Broker · Apopka, FL · Member since 2017 · 492 posts · 528 votes
    8y
    @Kelly Iannone one spot I'd love to do that is up near Kelly Park and 429 in Apopka. ORMC just bought 51 acres just west of 429. As in so recently it is only confirmed by a fairly credible local paper. It was rumored awhile and a local paper just reported it is a done deal. That whole area is going to explode once official build plans are released and especially when construction starts . FL hospital just spent $203mil to build their campus, I doubt ORMC bought 51 acres for cattle :). Near the Apopka FL hospital a new apartment complex is getting over $1700/mo for their 3/2 units. Before the hospital nobody would have invested in apartments there. A few 7000 sqft lots within 3 miles of the new ormc property are listed for $25k, there's a slightly larger one for $40k and I saw a few 10-13acre parcels for under $300k. A lot of it is AG land currently but the county is pushing to develop and would likely happily approve small multis. There's also a massive "development of regional impact", Kelly Park Crossing that is nearing ground breaking on something like 3900 acres over the next 20 years. It'll be sort of the Baldwin Park of Apopka. ORMC will likely have a more immediate impact of rent demand.
  • Real Estate Broker · Apopka, FL · Member since 2017 · 492 posts · 528 votes
    8y
    I mistyped 3900 and meant to say 390 acres, but just looked it up and Kelly Park Crossing development is actually 694 acres in size. So a correction to my correction...
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