Buying an Orlando investment property is an excellent way to diversify a portfolio of stocks and bonds. It’s also a good idea if you already have a growing real estate portfolio and you want to increase what you earn on those properties.
You might be wondering if this is the best time to buy an investment property. Prices are higher and inventory is tight. Should you wait for the market to slow down and prices to drop?
That’s actually not necessary.
Remember that real estate markets move a lot slower than stocks. Everyone might be selling right now in order to earn maximum profits on their assets. But, if you’re a brave investor who is willing to hold onto a property and even add a new property to their portfolio, you’ll be in a stronger position over the long term.
Here’s how we think about buying investment properties.
It’s Always a Good Time to Buy in Orlando
Investors who have been buying and selling rental homes for the last 15 or 20 years have seen the Orlando market at its best and worst. There’s really no bad time to buy because the market will continually shift from places of strength to periods where it’s a challenge to rent out a home.
Rents are going up. Demand for well-maintained properties is soaring. More and more tenants are moving into Orlando as the population grows.
Even if you have to spend a little more to buy an investment property right now, you’re going to make some money from it almost right away.
The Orlando rental market is extremely strong. We go through the same cycles of growth that other markets have, but our growth has been record-breaking in recent years. Home values tend to double every 10 years. That’s a pretty good indicator that you’re going to make money on your investment no matter when you buy.
Buy Orlando Investment Properties to Hold
Whether you buy during a strong real estate market or a slow real estate market, the best way to maximize that investment is by holding onto your new and existing assets as long as possible.
This is an investing strategy known as buy and hold. It’s the opposite of a buy and flip strategy, which some investors use if they want to make quick money instead of building long term wealth.
Quick cash is an appealing idea. But, it doesn’t always deliver the profits that you expect it to.
If your strategy, instead, is focused on buying a stable rental property, keeping it occupied by great tenants for five or 10 years or even longer, and then even paying off the mortgage to earn cash every month while the home appreciates – you’re in a strong investment position.
It’s still a good time to get some low-cost financing deals. You can find some great investment properties in the Orlando area if you know where to look.
We can help you find them.
If you’re thinking about buying investment property in Orlando or anywhere throughout central Florida, please contact us at Park Avenue Property Management. We work in Lake Buena Vista, Orlando, Kissimmee, Celebration, Maitland, Altamonte Springs, West Palm Beach and Tampa Bay.