Sunshine, Rainbows, and Disney World
When we think of Orlando, FL, we think of sunshine, rainbows, and Mickey Mouse, all for obvious reasons. However, the real estate investor part of us also thinks about high rental income, stable cash on cash return rates, and acceptable median home prices. We can’t help but think about the numbers because it’s what we specialize in.
As real estate investors, we know how critical it is to see some attractive numbers in an investment property. No, the numbers don’t stand alone, but they are good indicators of how much money you make in real estate. Mashvisor can give you the real estate analytics you need to see how “financially attractive” your investment property is.
Now, we share with you those numbers. Orlando real estate is considered one of the hot U.S. real estate markets to invest in this year. Here, we give you some of the real estate analytics of the Orlando real estate market.
The Data is Speaking
We know number talk can get overwhelming, and we want to make the job a little easier by explaining to you what our numbers mean. We have to put the value to numbers. No use of having a crisp Benjamin Franklin in your pocket if you don’t know its monetary value, right?
Here, we translated what the numbers are saying. Yes, we are professional number translators and are proud to be so.
Airbnb Rental Income
This is the median amount of rental income you’re going to be making off of an investment property. But, there’s a twist. This rental income value is how much you could make if you rent out a house on Airbnb.
We are sure you know all the talk about Airbnb, so we’re not going to get into that. You should know however, the Orlando real estate market is an ideal Airbnb investment location. Tourism is at an all-time high and the Airbnb regulations are not suffocating like they tend to be in other U.S. housing markets.
Don’t mix up the idea of “median” with “average.” Let’s talk about what we mean by median Airbnb rental income. This would mean if there were 100 investment properties, there are 50 investment properties with rental incomes higher than the property (that yields the median Airbnb rental income), and 50 properties with Airbnb income below the rental property.
Traditional Rental Income
Same idea as the Airbnb rental income, but instead, the property is owned with a more traditional real estate investment strategy. For example, a buy-and-hold property, multi-family homes, or fix & flips. No matter the type of property, we will give the median traditional rental income for all those types of properties.
Airbnb & Traditional Cash on Cash Return
In dictionary words, this is the rate of return that calculates how much cash income is earned on the money put into the real estate transaction.
In English, that basically means knowing how much money is going back into your pocket once it’s taken out. You aim at making more money than what you put into the real estate property in the first place.
Median House Price
This is the midway point of all the investment properties sold at market price over a set period. The median price is used instead of the mean because it is a more accurate indicator of the market since it reflects the sample size being used.
Again, this means that if there are 100 investment properties sold during a certain month, the median investment property price would be the house price in the middle. So that rental property has 50 property prices above it and 50 property prices below it.
Without Further Ado,
Now that we did our “translation session”, it’s time for the good stuff. We want to mention that the following data is as of May 2018, so we have not failed you of being up to date with the Orlando real estate market. Now, for the part you have all been waiting for: the Mashvisor real estate analytics of the Orlando real estate market:
Orlando Real Estate Market: Should You Invest in the Sunshine?
So we have one part down of the Orlando real estate market: the numbers are pretty attractive. However, what other “attractive” features does this sunny state have to offer? Here are some of our reasons as to why you should invest in the Orlando real estate market:
The Population is Growing, Growing, Growing
A growing population is always a sign of a potentially prosperous investment opportunity. The city’s population is growing at a much faster rate than other U.S. real estate markets today. This bright city has seen a population growth that reached 7.3% over the past three years, making it a home to over 3.3 million residents! That is a lot of residents.
With the growth of population, comes the growth of the need for housing. The demand is there, and you can give the supply. A rise in population is a factor you want to look for in a U.S. housing market, as it opens up even more opportunity for real estate investors like you. You are ready to get up and at ’em so go, go, go.
The Economy is Booming, Booming, Booming
This is another one of those attractive features to look out for when you are investing in real estate. The Orlando real estate market has seen an increasing job growth. Number wise, Orlando’s employment rate is up 4.6%, while unemployment is at an all-time low of 4.5%.
With how the U.S. economy has been the past couple of years, Orlando’s rates are significantly better than the national average.
The growing job market has added a significant demand in the Orlando area. Once again, you can meet the demand with supply if you choose to invest in the Orlando real estate market.
It is no surprise why economic growth is considered an attractive feature to both the residents and investors of the Orlando real estate market.
Stable jobs mean money flowing into the pockets of your potential tenants. Money in their pockets means rental income flowing into your bank account. It’s a win-win situation.
Investment Properties Available in All Shapes and Sizes
There is variety! We can agree that it is convenient to invest in a real estate market that gives the opportunity for more than just one type of investment to work. That is just the case with the Orlando real estate market.
Orlando, Florida attracts all types of tenants, whether they are short term or long term. That means whether you choose to invest in vacation rental properties, or more long-term alternatives, you can make it work!
You get the best of not just both worlds, but many other real estate worlds in the Orlando real estate market.
We do want to add, however, that some Orlando neighborhoods are zoned for short-term Airbnb rentals, while others are not. However, don’t feel discouraged to rent out a room on Airbnb. Just consult a legal advisor to make sure the neighborhood of your choice allows Orlando real estate through Airbnb.
If not, there are always more fish in the sea. Find the alternatives! It would be a shame to miss out on the great rental property opportunities made available to you because one method didn’t work.
Get to Know Orlando, FL
We want to introduce you to the Orlando, FL area. We present to you here some demographics so you can get to know the city’s highs and lows in general. We want you to know the location you are investing in upside down, so here is a quick overview.
- Cost of living index falls at 72.34, coming in at the 144th place out of 535 cities.
- Price to rent ratio in the city center is at a 7.59 with a gross rental yield of 13.17%. Outside of the city center, the ratio is 6.57 with a rental yield of 15.23%
- Median household income: $41,901
- Crime Index is at a 54.80/100
- The overall quality of life index is 175.27, which is considered to be very high.
That’s a Wrap
We think we did a pretty good job of giving you the break down of the Orlando real estate market. Investing in the sunny state could be one of the smartest real estate investment moves. The most successful real estate investors are able to take what they’re given and make it into something great.
That is just what you need in order to make it work. That is the path to success not only in the Orlando real estate market, but any of the other U.S. real estate markets you decide to pursue.
You’ve got the real estate investment tools, you’ve got the real estate investing mind, now go out there and get the real estate investment properties.
To learn more about how we will help you make faster and smarter real estate investment decisions, click here.