5 Key Points to Consider Before Buying Your First Orlando Investment Property

If you’re about to buy your first Orlando investment property – congratulations. This market is a profitable one for real estate investors, and we attract local buyers as well as investors from all over the country and even internationally. Orlando rental properties provide high rents, a well-qualified tenant pool, and consistent appreciation in value.

As a new Orlando investor, it’s best to surround yourself with as much professional advice as possible. It’s easy to make an expensive mistake. We have five key points that you’ll want to consider before you close your deal.

Get to Know the Orlando Rental Market

Smart investors spend some time researching the market they’re about to enter, and you should do that with Orlando. There’s a diverse and dynamic economy here, and the communities and the neighborhoods in and around Orlando have different environments, tenants, and rental values. When you’re renting out a property, you’ll have to understand the nuances and trends of the local market. Orlando is its own rental market, but there are also at least a dozen sub-markets.

Getting an idea of the market strengths and weaknesses will help you price your property competitively when you’re ready to rent it out. It will also help you market strategically and plan for upgrades and updates that will appeal to your best tenants.

With the right market statistics and data, you’ll buy the property that fits your investment goals.

Establish an Estimated Rental Value

Before you buy an Orlando investment property, you need to understand its rental value. Don’t buy a home without knowing how much you’re likely to earn in rent. This information can be found through general rental websites, but it’s not always reliable. Talk to an Orlando property manager about what homes like the one you plan to buy are renting for. Ask about vacancy rates and turnover times. You need this data to determine how much you’re going to earn in cash flow and long term ROI.

Budget for Expenses, Especially Maintenance

Many new Orlando investors forget that their expenses do not end once a property is purchased.

You’ll face routine and emergency maintenance costs, and those can never be avoided. Even if your home is new and in excellent condition, things will break and repairs will be needed. You’ll have to be responsive and ready to meet the needs of your tenant and your property.

We recommend that you put aside a reserve so you can easily and quickly pay for those maintenance issues as they arise.

Additional expenses will include vacancy and turnover. There are marketing and advertising costs to consider as well as professional services such as property management, insurance, accounting, and legal fees. You’ll have taxes and insurance, which are unavoidable. Budget all of your expenses so that you know what the numbers look like before you buy.

Treat Your Orlando Rental Property as a Business

It’s easy to get emotional about your first investment property in Orlando. Remember that you’re not going to live in this property yourself. You don’t have to love it, and you don’t have to spend a lot of money renovating a home that would appeal to you personally. Think like a tenant, and invest in a property that will earn you consistent rental income and appreciate in value. This is an income-producing property, not your own personal dream home.

Choosing an Orlando Property Manager

Choosing an Orlando Property ManagerUnless you have the time, knowledge, and experience to manage an income-producing property on your own, hire a professional Orlando property manager. You need someone who knows the local market and understands the property management industry. Find a company that can accurately price the home, market it, and screen for highly qualified Orlando tenants.

Look for a management company that has good relationships with local vendors and has a reputation for helping owners earn more and spend less on their investment. A local management company will also understand all the laws, requirements, and best practices in Orlando real estate and management. You need local expertise when it comes to lease agreements, code compliance, and reporting.

We love working with new investors, so if you have any additional questions, please contact our team at Park Avenue Property Management.