Orlando real estate has always been a top market for property investors in the United States. The reason that makes this city a desirable choice is the fact that Orlando investment properties provide a good return on investment regardless of the rental strategy – traditional or Airbnb. Nonetheless, one real estate market trend in Orlando is the increasing popularity of Airbnb rentals. If you’re planning on keeping up with this trend, you might be wondering whether Airbnb Orlando makes a good investment this year. Short answer: yes!
Keep reading as we explain why you should invest in Airbnb Orlando over traditional Orlando investment properties. We further provide you with real estate data analytics to support our claim in addition to the best neighborhoods that real estate investors should consider according to Mashvisor’s rental property calculator. To learn more about our product, click here.
Related: How Can You Use a Rental Property Calculator to Buy the Best Investment Properties?
Why Airbnb Orlando Is a Good Investment
1) Airbnb is Legal
The first and most important factor to consider before investing in Airbnb rentals in any city is the laws and regulations regarding short-term rentals in the said city, as they can affect the performance of your rental property and return on investment. First of all, Orlando real estate investors will be happy to hear that Airbnb Orlando is legal! As a matter of fact, the city recently added regulations that ease operating Airbnb rental properties.
The only concerning issues regarding Airbnb Orlando is that real estate investors may not be allowed to rent out for the short-term in some areas due to zoning and homeowner associations. This, however, can easily be avoided if you do your due diligence and research before buying an investment property as an Airbnb rental. Read more laws and regulations regarding Airbnb Orlando on the Airbnb’s help center for the city of Orlando, FL.
Related: Four Things to Consider Before Purchasing an Airbnb Investment Property
2) High Rental Demand Thanks to Tourism
Smart real estate investors know that the best locations to invest in Airbnb rentals are those with a strong tourism industry simply because tourists and vacationers are the main tenants of short-term rentals. This is another reason why Airbnb Orlando makes a good investment! The city of Orlando attracts tourists with its beautiful beaches, Disney Land, Universal Studios, SeaWorld and even Lego Land. It is the #1 tourist destination in the world with 66 million visitors annually! The city also has a huge vacation home market, so it’s no surprise that some property investors are interested in buying Airbnb Orlando investment properties.
To start looking for and analyzing investment properties in Orlando, make use of our rental property calculator. With this real estate investing tool, you’ll be given projections of readily estimated values regarding the cash on cash return, cap rate, rental income, and Airbnb occupancy rate of investment properties in the city of your choice. This will enable property investors to find the best performing Airbnb Orlando investment property in a matter of minutes!
To start looking for and analyzing the best investment properties in the Orlando real estate market, click here.
3) Airbnb Orlando is Very Profitable
As mentioned, the Orlando real estate market is a good location for both traditional and Airbnb investments. Yet, when looking at data from Mashvisor’s rental property calculator (see more below), property investors will notice that Airbnb rentals in 2018 yield a much higher return on investment than traditional rentals. This further means that Airbnb is the optimal rental strategy for an Orlando real estate investor.
Related: Airbnb Investment or Traditional Investment: How to Determine The Optimal Strategy
To find the most profitable Airbnb Orlando investment properties in a matter of minutes, use our real estate investing tool – the Property Finder. As a real estate investor, all you have to do is enter your city of choice, rental strategy (traditional or Airbnb), budget, as well as other filters to set your search criteria. Our property finder tool will then give you a list of the properties that not only match your criteria but also provide the best returns.
Do you have a free Mashvisor account? Click here to use our Property Finder and find properties in a matter of minutes!
The Orlando Real Estate Market Statistics
- Median Property Price: $356,398
- Price Per Sqft: $177.18
- Traditional Rental Income: $1,633
- Airbnb Rental Income: $2,116
- Traditional Cash on Cash Return: 1.6%
- Airbnb Cash on Cash Return: 2.32%
- Traditional Cap Rate: 1.6%
- Airbnb Cap Rate: 2.32%
- Airbnb Occupancy Rate: 56.85%
As you can see, a rental property in Orlando real estate will generate an Airbnb rental income higher than a traditional one, which will, in turn, lead to higher return on investment.
To find such statistics and data analytics for any other city across the US housing market, just sign up with Mashvisor.
Where to Find the Best Airbnb Orlando Investment Properties
One more thing left to explore is the best neighborhoods to consider when going for Airbnb rentals in the Orlando real estate market. Once again, Mashvisor’s tools give you the answer:
#1 Park Central
- Median Property Price: $120,911
- Price Per Sqft: $102.34
- Airbnb Rental Income: $1,823
- Airbnb Occupancy Rate: 61.62%
- Cash on Cash Return: 5.43%
- Cap Rate: 5.43%
- Median Property Price: $340,732
- Price Per Sqft: $165.26
- Airbnb Rental Income: $2,971
- Airbnb Occupancy Rate: 57.86%
- Cash on Cash Return: 4.48%
- Cap Rate: 4.48%
#3 Kirkman South
- Median Property Price: $414,311
- Price Per Sqft: $196.47
- Airbnb Rental Income: $2,951
- Airbnb Occupancy Rate: 69.53%
- Cash on Cash Return: 4.37%
- Cap Rate: 4.37%
#4 Metro West
- Median Property Price: $265,531
- Price Per Sqft: $145.69
- Airbnb Rental Income: $2,344
- Airbnb Occupancy Rate: 65.32%
- Cash on Cash Return: 3.68%
- Cap Rate: 3.68%
#5 Baldwin Park
- Median Property Price: $453,715
- Price Per Sqft: $198.57
- Airbnb Rental Income: $3,184
- Airbnb Occupancy Rate: 58%
- Cash on Cash Return: 3.12%
- Cap Rate: 3.12%
The Bottom Line
To sum up, great investment opportunities are awaiting property investors who are planning on investing in Airbnb Orlando this year. So what are you waiting for? Click here to start out your 14-day free trial with Mashvisor and find the most profitable investment properties in the city and neighborhood of your choice within minutes.
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