Interest rates for Orlando rental property investments have begun to decline (6 weeks straight of decreases). Whether you’re looking to add rental homes to your portfolio or you’re ready to make your first rental property purchase, you need to make sure you’re getting the best return on your investment. That means finding areas with affordable investment property rates and high tenant populations and knowing which neighborhoods may be better to avoid. Below, we offer suggestions on the top neighborhoods in the Orlando area for rental property purchases.
Consider Rental Properties Here
In general, certain neighborhoods have greater allure for investors than others. The attractiveness of a property depends on the neighborhood market rental rates, property affordability, and areas with high rental populations.
Of course, every property is unique so these are only generalizations, but the following places are usually the best neighborhoods to buy rental property in Orlando areas:
- Deltona
- Kissimmee
- Poinciana
- Ocala (including surrounding communities like Summerfield, Belleview, Wildwood, and Marion Oaks)
- St. Cloud
- Davenport
- Ocoee
- Clermont
- Apopka
- Orlando (except for Pine Hills, which has a relatively high crime rate)
- Palm Bay (although the market is currently saturated)
Houses in these areas tend to be more reasonably priced. If you already own property in these areas, consider renting it out with an experienced Orlando property management company.
Proceed with Caution
Just like the typically favorable neighborhoods to find rental property, the following are only generalizations. However, it helps to be aware of potential issues you could run into if you’re looking to purchase property. If you find rental property for sale in one of these neighborhoods, proceed with caution by doing your homework:
- Winter Park (very high end)
- Lake Nona (homes too expensive to cash flow)
- Winter Garden (high rental amounts, very few can afford)
- Windermere (high rental amounts, very few can afford)
- Avalon Park (high rental amounts, very few can afford)
While all very nice neighborhoods, they don’t make the best places to purchase rental property. This is because of the high sale price points, smaller tenant pools, and inability of rental rates to provide an adequate return on investment.
What To Look For in Rental Property
Regardless of where you find rental property for sale, you still need to figure out if a particular home on the market makes sense for your investment portfolio. Think about what you need this rental property to do for you (i.e., bring you in cash today or capitalize on future appreciation). Do the numbers (purchase price, net operating income, expenses, and cash flow) make this a wise purchase?
Rental homes are an important investment. So potential buyers need to do their due diligence. There are a lot of factors at play so if you’re looking to purchase rental property, do your homework. What’s the background on the neighborhood of the property? Are there any developments that could make this location a desirable rental market now or in the near future? You have to stay up-to-date on how the market is performing in the area.
Orlando Rental Property Management and Realty
If you already own rental property in these or other areas, working with a top-rated property manager can give you “property piece of mind.” Give The Realty Medics a call at 407-315-1126 or complete our online form.
If you’re looking for new rental property to add to your portfolio, did you know The Realty Medics has a premier home sales team as well? We’ll help you know what to look for and help you find your perfect investment property.
