Orlando real estate is one of the hottest housing markets in the United States. In fact, Forbes ranked the city as the 3rd best investment location in 2018! So, whether you’re an experienced real estate investor searching for your next investment property to grow your real estate investment portfolio, or a beginner real estate investor looking to buy your first investment property, Orlando real estate is the best place to go for.
Related: Top 10 Real Estate Markets for Buying Rental Property in 2018
In this guide, we’re going to explore the best neighborhoods in which real estate investors should consider buying an investment property in the Orlando real estate market. But first, let’s point out what makes Orlando real estate one of the best housing markets to invest in.
What Makes Orlando Real Estate a Top Investing Market
Population Growth
Real estate investing will never be a dying business mainly because people will always need places to live in. The best places to invest in real estate are those with a growing population simply because: more people = more investing opportunities. This is the first reason why Orlando real estate is one of the best housing markets. The city is home to over 3.3 million residents, and the numbers are growing at a much faster rate than other US cities today.
Moreover, Orlando has not been attracting only resident but also tourists. In fact, thanks to its warm climate, beautiful beaches, and world-famous amusement parks, the city is a top tourist destination with almost 35 million visitors each year! Thus, Orlando real estate is the best housing market to invest in whether for the long-term (traditional residential investment properties) or the short-term (Airbnb investment properties).
Related: Real Estate Investing: Should You Go for Long Term or Short Term?
Economic Growth
As Orlando’s population continues to grow, so does the city’s economy! The thriving economy is, in fact, the backbone to the success of the Orlando real estate market. Orlando’s employment growth is better than that of most US cities. If you want to talk numbers, Orlando’s employment rate increased by 4.6%, while its unemployment rate went down to 4.5% (which is significantly better than the national average).
This growing job market has also added more demand for Orlando real estate properties, which in turn, increased homes values. This is a favorable sign for real estate investors as they are guaranteed to find tenants who are capable of paying their monthly rent, which further generates a positive cash flow. Additionally, in a housing market with economic growth, a real estate investor can charge – and justify – higher rents for their investment properties, which leads to a higher return on investment.
To calculate and analyze an investment property’s rate of return on investment, click here!
Related: Real Estate Questions: What Is a Good Return on Investment?
Now that we’ve covered the main reasons why Orlando real estate is a top housing market in 2018, here’s a quick summary of the Orlando real estate market as computed by Mashvisor’s investment property calculator, in addition to list of the best neighborhoods in which real estate investors should buy an investment property in the Orlando real estate market.
A Quick Summary of the Orlando Real Estate Market
- Median Property Price: $294,399
- Traditional Rental Income: $1,579
- Airbnb Rental Income: $362
- Traditional Cash on Cash Return: 1.97%
- Airbnb Cash on Cash Return: 0.72%
- Traditional Cap Rate: 1.97%
- Airbnb Cap Rate: 0.72%
The Best Neighborhoods in the Orlando Real Estate Market
Orlando Real Estate – Florida Center North
- Median Property Price: $139,950
- Traditional Rental Income: $1,217
- Airbnb Rental Income: $1,398
- Traditional Cash on Cash Return: 1.77%
- Airbnb Cash on Cash Return: 4.42%
- Traditional Cap Rate: 1.77%
- Airbnb Cap Rate: 4.42%
- Occupancy Rate: 68.70%
Orlando Real Estate – Ventura
- Median Property Price: $258,000
- Traditional Rental Income: $1,518
- Airbnb Rental Income: $1,976
- Traditional Cash on Cash Return: 2.56%
- Airbnb Cash on Cash Return: 3.39%
- Traditional Cap Rate: 2.56%
- Airbnb Cap Rate: 3.39%
- Occupancy Rate: 62.33%
Orlando Real Estate – College Park
- Median Property Price: $514,900
- Traditional Rental Income: $1,619
- Airbnb Rental Income: $1,523
- Traditional Cash on Cash Return: 0.5%
- Airbnb Cash on Cash Return: 0.41%
- Traditional Cap Rate: 0.5%
- Airbnb Cap Rate: 0.41%
- Occupancy Rate: 33.93%
Orlando Real Estate – Lawsona-Fern Creek
- Median Property Price: $535,850
- Traditional Rental Income: $1,629
- Airbnb Rental Income: $2,077
- Traditional Cash on Cash Return: 1.56%
- Airbnb Cash on Cash Return: 2.57%
- Traditional Cap Rate: 1.56%
- Airbnb Cap Rate: 2.57%
- Occupancy Rate: 38.85%
Orlando Real Estate – Metro West
- Median Property Price: $319,900
- Traditional Rental Income: $1,589
- Airbnb Rental Income: $3,134
- Traditional Cash on Cash Return: 1.83%
- Airbnb Cash on Cash Return: 7.65%
- Traditional Cap Rate: 1.83%
- Airbnb Cap Rate: 7.65%
- Occupancy Rate: 62.00%
Orlando Real Estate – Baldwin Park
- Median Property Price: $400,000
- Traditional Rental Income: $2,347
- Airbnb Rental Income: $1,789
- Traditional Cash on Cash Return: 2.75%
- Airbnb Cash on Cash Return: 1.19%
- Traditional Cap Rate: 2.75%
- Airbnb Cap Rate: 1.19%
- Occupancy Rate: 50.17%
Orlando Real Estate – Florida Center
- Median Property Price: $249,450
- Traditional Rental Income: $1,655
- Airbnb Rental Income: $2,081
- Traditional Cash on Cash Return: 1.57%
- Airbnb Cash on Cash Return: 0.76%
- Traditional Cap Rate: 1.57%
- Airbnb Cap Rate: 0.76%
- Occupancy Rate: 69.00%
Orlando Real Estate – Central Business District
- Median Property Price: $379,500
- Traditional Rental Income: $1,526
- Airbnb Rental Income: $2,924
- Traditional Cash on Cash Return: 0.69%
- Airbnb Cash on Cash Return: 4.94%
- Traditional Cap Rate: 0.69%
- Airbnb Cap Rate: 4.94%
- Occupancy Rate: 61.73%
Orlando Real Estate – Millenia
- Median Property Price: $115,000
- Traditional Rental Income: $1,078
- Airbnb Rental Income: $2,266
- Traditional Cash on Cash Return: 2.22%
- Airbnb Cash on Cash Return: 11.72%
- Traditional Cap Rate: 2.22%
- Airbnb Cap Rate: 11.72%
- Occupancy Rate: 55.64%
Orlando Real Estate – Wadeview Park
- Median Property Price: $335,950
- Traditional Rental Income: $1,626
- Airbnb Rental Income: $2,344
- Traditional Cash on Cash Return: 1.83%
- Airbnb Cash on Cash Return: 4.13%
- Traditional Cap Rate: 1.83%
- Airbnb Cap Rate: 4.13%
- Occupancy Rate: 60.80%
Sign up for Mashvisor now to get access to our investment property calculator as well as other real estate investing tools which will help you buy the best Orlando real estate investment properties.
Orlando Real Estate – The Bottom Line
It’s clear why Orlando real estate is one of the best housing markets in the United States. Real estate investors have plenty of opportunities to find great investment properties worthy of their money in the above-mentioned neighborhoods.
To save your time and money, make use of Mashvisor’s property search engine and investment property calculator to analyze and find the best investment properties in any state, city, and neighborhood in the US! Mashvisor’s Knowledge Center provides real estate investors with numerous city guides, step-by-step blogs, and tips for a successful real estate investing career.
Click here to start searching for the best investment property in Orlando real estate right now!
