Orlando, Florida has long been one of the hottest real estate markets in the United States thanks to its sunny weather, booming tourism industry centered around theme parks like Disney World and Universal Studios, and strong job growth. For investors looking to purchase investment properties, Orlando offers a lot of upside potential. Here are some tips for investing in real estate in Orlando.
Look for properties near major theme parks and attractions
One of the best ways to find profitable investment properties in Orlando is to look near major theme parks like Disney World, Universal Studios, SeaWorld, and other popular tourist destinations. These areas see huge demand from tourists and families looking for vacation rentals and short-term accommodations. Properties near the parks and attractions can earn strong rents and hold their value over time.
Focus on neighborhoods with population and job growth
In addition to tourism-driven demand, Orlando has a strong and diversified economy that is creating new jobs in sectors like technology, finance, aerospace and healthcare. Look for investment properties in Orlando neighborhoods and suburbs that are seeing new residents and businesses move in, which will push up rents and home values. Some top growth areas include Lake Nona, Horizon West and MetroWest.
Consider investing in vacation rentals
With Orlando’s massive tourism industry, vacation rental properties can be extremely lucrative investments. These furnished short-term rentals appeal to families and groups visiting the theme parks. The key is buying properties that are close to the parks and attractions, as well as near dining and entertainment. Working with a professional vacation rental management company can take care of advertising, booking and maintenance.
Factor in property taxes and insurance costs
While Orlando offers attractive cap rates and rental yields for investment properties, investors need to factor in the area’s property taxes and insurance costs. Florida has moderately high property taxes compared to other states, and insurance rates can be high due to risk from hurricanes. Running the numbers with all expenses included is important.
Have a long-term view for real estate investing
The Orlando real estate market has periods of upswings and downturns, often tied to tourism and the broader economy. While the long-term outlook is positive, investors should be prepared to hold properties for 5-10 years to ride out any short-term fluctuations in the market and maximize returns over time. Orlando offers stability and growth potential for long-term real estate investors.
With its strong tourism industry and sunny location, Orlando is an excellent market for real estate investing. Focusing on properties near major attractions, in high-growth areas and ideal for vacation rentals can provide solid returns over time.