Real Estate Investing in Orlando: Our Investor Services
Have you ever thought about real estate investing in Orlando, FL? The City of Orlando is nicknamed “The City Beautiful,” due to its beautiful beaches and warm climate and it’s also a popular place to operate and own a rental home.
“Rents grew 2.3% in the last year, which is well ahead of the U.S. overall growth rate. Rent yield in Orlando is markedly higher than in most other cities. Comparatively low home prices combine with relatively higher rent prices to create a city that is especially suitable to owning rental property.” – Forbes
At Specialized Property Management Orlando, we help rental property owners manage their homes, whether they live close by or far away. As a reliable, trustworthy property management company, we take the hassle out of self-management. Here are just a few reasons why rental investments in Orlando make sense.
We’ll Help You Sell Your Rental Home Even if You Have Tenants
Once you’ve decided to sell your rental home, you should waste no time telling your current tenants. At the same time, you should not expect them to leave the house for multiple daily showings and interfere with their routine activities. As current, rent-paying tenants, they have a right to continue living in the home until their lease is up without interference. So, how do you sell your rental property without disturbing them?
At Specialized Property Management Orlando, we allow your tenants to stay where they are. You don’t have to worry about wasted vacancy days and losing money, and your tenants don’t have to worry about daily interruptions. Instead of just marketing to the local area, we’ll market your property to investors throughout the country who are interested in purchasing multiple single-family rental homes. Investors understand that wear and tear is normal with a home that has long-standing tenants, so you won’t need to spend weeks repainting and repairing the property, getting it ready to show to prospective tenants. You’ll save time and money on repairs by going this route.
The best thing? Our extensive network of investors can view your home online and decide if they want to purchase it, without interfering with your tenants’ day-to-day lives. Only one in-person inspection is conducted throughout the whole process, so your tenants can rest easy, and you can, too.
Our extensive network of investors will also view your home online and decide if they want to purchase it, without interfering with your tenants’ day-to-day lives. Only one in-person inspection is conducted throughout the whole process, so tenants don’t have to worry about leaving the home every day while realtors and buyers survey the space.
Our Team at SPM Can Help You Sort Through Potential Rental Investments in Orlando
If you don’t live in Florida, you may not know the best places to own and operate a rental property. Without local expertise, you may not be aware that you can charge a higher monthly rental fee in Orlando vs. the Tampa or Jacksonville area. At Specialized Property Management Orlando, our goal is to help you sort through rental properties that are within your budget and find the ones that make sense for your investment goals. We can help you pinpoint the best Orlando neighborhoods where property values are increasing long-term.
Our professional team of experts can show you research trends and real estate market data that will help you find great properties. You can view homes that were just built and others that have been lived in for awhile. If you’re interested in purchasing a multi-family home such as a duplex or fourplex, we’ll help you with that, too. Our goal is to do all the work and research so you can relax and reap the benefits of a smart investment.
Benefits to Real Estate Investing in Orlando
If you’re still not convinced that investing in single-family homes is the right business move for you, here are a few strategies that really work and the advantages that come with each:
“Buy and Hold” Strategy Benefits
Long-Term Passive Income
Many people save a percentage of their monthly income for years to go on that highly anticipated trip to Italy, scrimping and setting money aside to make that dream a reality. Then that dream dissolves when they have to make that Emergency Room visit in the middle of the night. The great thing about investing in a real estate property is that you’ll enjoy a long-term passive income, where you can earn a little cash on the side without having to set aside a portion of your monthly paycheck. It’s extra money in your pocket without really working for it. Although flipping homes is a great way to make a large profit at once, buying and holding allows you to move a renter into the house you bought and let that same house pay you monthly for years and years over the long-term.
Did you know that most of the expenses incurred from owning rental properties are tax-deductible? Things like property management fees, maintenance and rehab on the property, and interest on debt financing can all give you much-needed tax breaks.
Avoid Market Crashes
You can’t always know what the housing market will do. The market crash and recession of 2008 negatively affected many real estate investors. Many people want to avoid market crashes by renting a home instead of buying. Two groups at the forefront of this trend are baby boomers and millennials. “Whether just starting out in their career or settling into retirement, both generations are seeking a lifestyle that offers mobility, convenience, and community.” – from WashingtonPost
By owning one of many rental investments in Orlando, you have a home to offer people who choose to rent instead of own, or to those who can’t afford their own homes just yet, but still want the lifestyle that a single-family rental home can provide. Right now in Orlando, population growth has been steady with 4.8%, and homes have increased in value by 10.7%. In fact, it is the second best place in the United States to own a rental property (from GoBankingRates).
When You Own a Rental Property, You Can Set a Competitive Rental Rate
According to Zillow, “Orlando home values have gone up 4.0% over the past year and Zillow predicts they will rise 1.8% within the next year. The median price of homes currently listed in Orlando is $285,000 while the median price of homes that sold is $246,900. The median rent price in Orlando is $1,600.”
If you own a single-family rental home, you can often charge tenants more than the median rental rate of $1,600 to stay competitive within hot areas. Rent rates do not necessarily follow home prices, especially if your rental home is in a popular neighborhood. Often, there are more requests for single-family rental homes and not enough to meet the demand. As long as you give your tenants plenty of notice, one of the advantages to real estate investing in Orlando is that you can increase rent prices annually to match the growing need.
Owning a Single-Family Home Means Easy Retirement Money
Our team at Specialized Property Management Orlando can teach you how to maximize the profit on your rental properties so the mortgages can be paid off more quickly than normal. More profit for you means a steady cash-flow you can enjoy in retirement and beyond.
Advantages of Turning Your Home Into an Annuity
Before you move out of your current home, think about renting it to tenants instead of selling it. SPM Orlando will deal with daily tenant interaction so you don’t have to, and you’ll get the benefits of the extra monthly rental income. Once you’ve acquired your first rental property and it’s doing well, you can continue to search for other rental investments in Orlando to increase your profits.
Some tenants find that they enjoy living in rental properties owned by investors and managed by rental property management companies such as SPM Orlando, rather than by DIY landlords who are trying to do everything themselves, or have very little experience. Just one reason why tenants prefer professional management is that they know they can access a 24/7 maintenance hotline and have issues solved by their management company in a timely manner.
Because renting instead of buying has become a lifestyle choice, renters now have higher standards and seek out single-family rentals that have updated appliances, high-end finishes, and are just well-kept all around. Sure, you might need to invest a little more upfront in a higher-end home to keep it competitive, but since the demand for an upscale home is there, you can benefit from renting it out to tenants in the long-term.
The BRRRR Method
Trying to avoid frequent tenant interaction for long periods of time? Then the BRRRR (Buy, Rehab, Rent, Refi, Repeat) process might be right for you. This method is only effective if you purchase undervalued or distressed houses that are well below market value.
“When you refinance an investment property the bank will usually only refinance 75 percent of the value. If you buy a property at full retail value and then try to refinance it, you won’t get much money back out. If you get a great deal, you could get most, all, or even more money back than you spent to buy and fix up the property.” – InvestFourMore
Once you buy that home, you should plan on repairing it (rehabbing it) with cash. Sometimes repairs can be much more expensive than you originally expect, so it’s important to hire people you trust who can make the repairs and stay within your budget. When the repairs are completed, you need to find a tenant to rent out your home. Again, this can be easier said than done. If you don’t have a lot of experience finding tenants, this would be a good opportunity to use a property management company to help. After the tenant is settled in, you need to find a reliable lender to walk you through a cash-out refinance so you get your money back to continue succeeding in real estate investing in Orlando.
Homes don’t always appraise for the amount that you think they should, so keep that in mind when you are considering this process. Here’s an example from InvestFourMore on how the BRRRR can work effectively:
- Buy a house for $100,000 that needs $15,000 in repairs.
- The house will be worth $155,000 once those repairs are made.
- When you refinance the house you can get a loan for $116,250.
- The new loans pays off the first loan you got when buying the house plus all the repairs.
For this method to keep bringing in cash for you, you should always keep your eyes peeled for the best deals in the area you’re looking to invest.
How SPM Helps With Real Estate Investing in Orlando
Specialized Property Management Orlando has the local expertise to help DIY investors make smart purchases in their desired area. With SPM, not only can we suggest potential homes to invest in, but we can also take care of the repairs and make your life a little easier. Our team members are familiar with the implementation of all the above strategies, and we can make the BRRRR method work to your advantage.
If you’re interested in purchasing the hundreds of homes available for sale online, we’ll do our best to help you find one you like-you won’t even have to leave your house! These types of purchases come with warranties on the house and can still produce a monthly cash-flow for you. You can even hire us to manage the rental property and take care of daily affairs. At Specialized Property Management Orlando, we also offer full-service portfolio management for large personal, institutional, or family trust investments with several rental homes.
Now is the Right Time to Invest!
Investing in single-family rental homes is a smart business move. Much like the stock market, real estate investing in Orlando can make you a profit and help you get ahead when your portfolio is professionally managed.
You can save time and money when you hire a professional, qualified property management company to assist you throughout every step of the process. At Specialized Property Management Orlando, we want to minimize your hassle and maximize your profits! Here’s what some of our satisfied customers have to say:
“I have 2 homes with this property management company over many years. They have always been there for me, both with services and great tenants. I highly recommend them.” -Review from Sam Thomas, Owner, Orlando, FL
“John the maintenance coordinator contacted me right away when my tenant had an issue with the shower. I also called him and left a voicemail and … he returned my call quickly! He explained to me what happened and what he has done. He gave me a feeling that he was on top of the issue. This is important since one of the main reasons of using a property management company is to take care of problems in a timely manner. This makes both me and my tenant happy. Good job.” -Review from Hon Sit, Owner, Orlando, FL
Interested in real estate investing in Orlando? Put us to work for you today! Complete the below form for a personal consultation on your investment strategy!