What types of properties are working out for you in Orlando, FL?

[Jonathan Feliciano]

Hello,

This post specifically addresses investors that have invested in properties in Orlando, FL.

I recently learned that different areas of the world are going to have certain properties that are just more successful than others. For example, buying a single-family home in the middle of Manhattan is virtually impossible; you would probably be better off buying an apartment or townhouse. That said, I wish to ask all of you the following:

What types of properties have you purchased in Orlando, FL, that have worked out for you and brought you monetary success? Is it multi-family homes, single-family homes, condos, etc.?

I look forward to reading your experiences!

[Shawn McCormick]

Hi @Jonathan Feliciano. I am a Realtor and investor in Orlando and can tell you that our market is very tight right now so to answer your question about what has been successful is tricky as a few years ago there were still lots of foreclosures, distressed properties to buy and add value to. We have seen 8-12% appreciation for the last couple years so the equity play is tough and although rents rates are very high, cash flow is not as easy because purchase prices have gone up and the 1% 'rule' is hard to accomplish. 

It also depends on your level of experience and risk tolerance. What works great for some can be too risky for others. We have a very large presence of Hedge Fund buyers, REITS, International buyers, and investors from all over clammering to be in this market and it has been very competitive.

Multi-family properties are hard to find because most investors hold them long term so there is very little turnover. We only have about 35-50 on the market now and most of those are overpriced or in terrible condition. We have a large vacation rental market too, but that is shakey right now as well. Most of the owners of those are from out of state and because Disney is not getting traffic, they are suffering because they depend on Airbnb etc. You might find some deals in that market because they want to dump their properties, but still getting top dollar as I see it so far.

Hope this helps a bit, let me know if I can answer anything else for you.