Most investors want to buy investment property close to Disney so that they can also rent out the property to Disney Vacation Families when the property is not in personal use. In order to do so, the community must be “zoned” for short term rentals…meaning the community rules and by-laws say that property may be rented out by the week or by the day. If the property is not in a community that is short term rental approved, than typically the rental term is for an annual lease or a minimum of 7 months.
Short term rental properties are found in Kissimmee, Davenport, along I-Drive in Orlando and the southern parts of Clermont. The closer you are to Disney, the better chance you have of keeping it rented.
1. Don’t be fooled by the “real low priced bargains”…yes, they can be cheap, but not necessarily a bargain. There is usually a reason for the lowest price: the units may be tiny efficiencies, the property may have been vandalized, the home owners association may have gone bankrupt and no one is taking care of the common area. Cheap is not always a good sign.
There are however Orlando Property Bargains in every price range as the majority of Orlando Vacation Investment Properties are 50% off or less of what they originally sold for. Condominium’s are still cash sales as banks are hesitant to lend money for communities that have a lot of foreclosures, short sales, non-payment of condo fees and non-owner occupied units.
There are good investments at all price ranges but an investor needs to weigh all the options and get solid information from someone that understands investment property.
2. Don’t expect everything to be “move in ready” with furniture. The majority of vacation investment properties need some kind of work…from paint and carpet to furniture, appliances and more. The higher the price; the better the condition. Property management companies are experienced at handling all the details once you buy, so the process is not difficult.
3. You must be realistic about vacation investment expectations…as you will not get rich quickly. There are expenses to cover: property management fees, asocialtion fees, taxes, electric, phone, furniture replacement and general upkeep. Rentals rates and occupancy is currently low, so while you should be able to offset some of your holding costs, you should not expect full occupancy and a steady cash flow.
Overall this is a wonderful time to buy as the prices are rock bottom and the choices are still plenty, but investors are in the market buying up multiple properties quickly. It is not a time to wait if you are going to invest in the short term rental market…you might just wait too long…and the Orlando Condo bargains could disappear.
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