Perhaps you’ve been sifting through Kissimmee houses for sale on real estate investment websites like Mashvisor and noticed that the projected returns are quite high. For example, any would-be or experienced rental property investor would surely be enticed by this single family home in the Kissimmee real estate market promising a 17% cash on cash return. But before you dive into buying an investment property in Kissimmee, it’s a good idea to do your research on the current state of the local housing market in 2021.
So, is it a good time to buy a house in Kissimmee?
8 Reasons Why Now Is a Good Time to Buy Kissimmee Real Estate
Our real estate market research along with Mashvisor’s data on the Kissimmee housing market 2021 shows that now is a good time for buying an investment property in Kissimmee. And this holds whether you wish to use the property as a long term or short term rental property. Here are the eight reasons why.
The Median Kissimmee House Price Falls Below the National Median
According to Realtor.com, the median list price for the US housing market in July 2021 was $385k. Of course, rising home prices have been making headlines in real estate news for some time and July marked a 10% YoY growth for the nation. So finding a real estate market where you can save big bucks when buying an investment property for sale is somewhat of a challenge.
However, looking at Mashvisor’s Kissimmee real estate data, we found that the median property price falls below the national median:
- Median Property Price: $301,713
- Price per Square Foot: $195
Although it’s not one of the cheapest places to invest in real estate, you will definitely be able to find a few good deals on houses for sale in Kissimmee, FL right now.
Not sure how to find real estate deals in the Kissimmee housing market? Visit Mashvisor now and set your budget with the easy-to-use filter. Instantly, you’ll find high-return investment properties for sale that you can afford.
Kissimmee Home Values Are Rapidly Increasing
Historically, homeowners and property investors in the Kissimmee housing market have enjoyed real estate appreciation. NeighborhoodScout reports that from Q1 2000 to Q1 2021, Kissimmee real estate appreciated by 140.5%. In the past year alone, home values have gone up by 11.6% according to Zillow.
Will investing in Kissimmee real estate right now allows you to enjoy the same appreciation down the line? Well, currently, the local housing market is hot. Realtor.com reports that, in July 2021, the city was a seller’s market. In a seller’s market, competition over the limited housing inventory typically drives prices way up. So it’s likely that your Kissimmee investment property will continue to rise in value under these market conditions.
Rent Prices Are Increasing in the Kissimmee Real Estate Market
Buying real estate for sale in Kissimmee and renting it out to long term tenants right now means you’ll benefit from the rising rents. According to a study by ApartmentList.com, Kissimmee rents outpaced the nation in June 2021 (a 3.7% increase vs a 2.3% increase). Compared to a year ago, rent prices are now 11.1% higher. And looking at rent before the Coronavirus pandemic (March 2020) vs today, the report shows that Kissimmee rental properties command a 7.5% higher rent.
Over Half of the Local Population Rents
Even though rent prices have drastically increased over the past year, over half of the population (58.9%) lives in a rental property in the Kissimmee real estate market in 2021 as opposed to owning a home. A real estate investor is sure to quickly find a tenant to fill a rental property and start generating positive cash flow.
A Traditional Rental Property Is Profitable
You may have guessed this from the last two points discussed, but let us show you how profitable it would be to invest in Kissimmee real estate right now. The following data is provided by Mashvisor:
- Traditional Monthly Rental Income: $1,532
- Traditional Cash on Cash Return: 3.0%
Remember, these are just what the average rental property in Kissimmee will earn. Sign up to Mashvisor now and find a top-performing Kissimmee rental property with high cash on cash return and rental income.
Airbnb Is Legal in Kissimmee
The Florida real estate market is generally known as Airbnb-friendly. And this is a great reason to invest in Kissimmee real estate today if you wish to buy an Airbnb property. Because, if you’ve started your research on Airbnb regulations in the US housing market, you’ll see that plenty of other cities ban the use of investment properties as short term rentals. However, Airbnb Kissimmee laws allow real estate investors to rent their properties to short term guests.
Of course, if you do plan on running an Airbnb in Kissimmee, be sure to do your homework on the local regulations. For example, the Airbnb laws in Kissimmee do include zoning restrictions. Short term rentals are only allowed in specific zones called short term rental overlay districts. Owners will also have to apply for a lodging license, meet certain health and safety requirements, and pay taxes on their short term rental properties, among other laws.
Kissimmee Ranked as the #3 Post Pandemic Comeback Travel Destination for 2021
Even with the availability of a COVID-19 vaccine and a lifting of travel restrictions, some real estate investors may still be wary of the idea of buying an Airbnb property anywhere in the US housing market for fear of future lockdowns and travel bans.
But looking towards the future in a post-COVID-19 world, the Kissimmee real estate market is actually a great place to invest in Airbnb, according to a study by RentCafe. The study looked at Google searches relating to travel and tourist destinations in March and April 2021 vs March and April 2020. The searches for the city of Kissimmee went up 446%, earning it the #3 spot on the list of Comeback Travel Destinations 2021.
With tourists and travelers gearing up to vacation in Kissimmee, buying an Airbnb investment property in the market today will mean high occupancy rates and earnings tomorrow. Just be sure to have a contingency plan in place if future lockdowns do occur in the area.
An Airbnb Rental Property Is Profitable
Of course, with so many people searching for travel options and accommodation in Kissimmee, you can be sure that local Airbnb rental properties are profitable. And Mashvisor’s July 2021 Airbnb data for the market shows this to be true:
- Average Airbnb Daily Rate: $161
- Monthly Airbnb Rental Income: $2,059
- Airbnb Cash on Cash Return: 2.9%
- Airbnb Occupancy Rate: 62%
Being in such proximity to Orlando and popular tourist destinations like Walt Disney World Resort, the Kissimmee real estate market is a hotspot for travelers and a great place for earning good Airbnb returns.
Start Your Search for Kissimmee Real Estate Now – With Mashvisor
2021 is a good time to buy Kissimmee real estate. But don’t just purchase any rental property in the Kissimmee housing market. Rather, use tools like Mashvisor to conduct a thorough (but quick!) investment property analysis on any Kissimmee investment property for sale of interest.
With Mashvisor’s real estate investment software, you can easily find Kissimmee properties that match your specific criteria like type and budget. Once you have your list, our investment property calculator will quickly project future returns based on any costs and financing details you enter. Within minutes, you will have a few money-making properties to start pursuing – and that’s a real advantage in this seller’s market!
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.