Orlando Real Estate Market Report 2019

Orlando Overview

Orlando is a major city in Central Florida and the largest inland city in the Sunshine State.

With a population of over 280,000 people, Orlando ranks as the 73rd most populous city in the US and the 4th in the State of Florida. The City Beautiful is the center of the Orlando metropolitan area, which is the 23rd largest metro area nationwide and the 6th largest in the Southern US with a population of above 2.5 million people.

The Orlando economy is a strong and diverse one, enjoying a positive growth rate which is forecast to continue in the coming years. While tourism is one of the driving forces in the local economy, Orlando is also an important industrial and high-tech hub. The main economic sectors include accommodation and food services, retail trade, health care, professional and scientific services, educational services, and arts and recreation. At the national level, Orlando constitutes a center of innovation in software design, digital media, aviation, aerospace, and agricultural technology. Furthermore, the city is home to the 7th largest research park in all of the US. Orlando is also a national leader in health care and medical services. In addition, the city is an important center of the film, television, and video game industry. This economic diversification accompanied by the strong growth in recent years attracts both commercial and residential real estate investments and gives property investors the confidence they need.

Meanwhile, Orlando comprises not only one of the most visited cities in the US (together with New York, Las Vegas, Chicago, and Miami) but also a leading tourist destination worldwide. The main reason is the fact that the city hosts 7 of the 10 most visited theme parks in North America, 5 of the most visited theme parks in the world, and 4 of the most visited water parks in the US. This is why Orlando has been named the Theme Park Capital of the World. The Walt Disney World resort comprises the largest tourist attraction in and around Orlando. Other significant tourist destinations include SeaWorld, Legoland, Universal Studios Florida, and Kennedy Space Center Visitor Complex.

Orlando features an average per capita income of $25,664, which is a bit below the US average of $28,555. The median household income amounts to $41,901 per year, below the national level of $53,482. The city has a lower unemployment rate and a higher job growth than the rest of the country. Another fact which is crucially important for Orlando real estate investors is that nearly two-thirds (65%) of the local population is renters rather than homeowners. This translates into a tenant pool of 182,000 people, which on the other hand means strong demand in the traditional Orlando rental market.

At the same time, in 2018 Orlando attracted a total of 75 million visitors, owing to the numerous theme parks and other tourist attractions. This means that the Airbnb Orlando rental business is one of the hottest in all of the US.

Orlando Real Estate Market Overview

Median Property Price: $344,100
Price per Square Foot: $180
Real Estate Appreciation: 98% since 2000 (about the same as the Florida real estate appreciation rate and significantly above the US average)
Days on Market: 86
Listings for Sale: 1,338
Price to Rent Ratio: 17 (moderate)
Buyer’s Market or Seller’s Market: A seller’s market to a balanced market
Renters’ Percent of Population: 65%

The Orlando housing market has been an attractive destination for real estate investors for decades, particularly thanks to its touristic importance. In 2018 the demand for Orlando real estate investments went up even further as this Central Florida city was marked as #4 among the US Markets to Watch for overall real estate perspectives in the PwC annual Emerging Trends in Real Estate: United States and Canada 2019 report. Orlando was ranked right after Dallas–Fort Worth, New York-Brooklyn, and Raleigh–Durham. An important driver of the Orlando real estate market has been and continues to increasingly be the ability to attract the interest of institutional investors. Other positive factors for the confident Orlando real estate market forecast 2019 and beyond are the high population growth (double the national rate) and the strong employment growth (well above the national level). All in all, the Orlando, Florida real estate market outlook is the strongest in the Sunshine State as well as in the entire South. No wonder that Orland is one of the hottest real estate markets in Florida. Thus, buying an Orlando investment property constitutes a profitable real estate strategy for both beginner and experienced investors in 2019, 2020, and beyond.

While the Orlando, Florida housing market is definitely a hot one for residential real estate properties, affordability has not become a major issue here, unlike in many of the other top real estate markets for investing in the US. According to Orlando, Florida real estate experts and analysts, in 2019 the local housing market is between a balanced, neutral market and a seller’s market. While Orlando house prices are appreciating at a high rate and property buyers exceed property sellers, real estate investors are still able to land good deals and do not need to engage in bidding wars. Moreover, Orlando, Florida real estate prices remain highly affordable with a median value of $344,100. This is 50% above the national median property value of $229,000, which is not too high for a hot real estate market as the Orlando one.

Central Florida real estate investors as well as those from out of state are attracted by the fact that nearly two-thirds of the Orlando population rents rather than owns a home. Combined with the moderate price to rent ratio, this high demand in the Orlando rental market means that landlords can achieve a high return on investment for traditional rental properties in the Orlando housing market. Currently they have 1,338 Orlando, Florida real estate listings to choose the best investment property to rent out on long term basis.

Best Property Types for Investing in the Orlando Residential Real Estate Market

Single Family Homes for Sale in Orlando, FL: 915
- Median Property Price: $382,800
- Price per Square Foot: $181
- Average Monthly Traditional Rental Income: $1,770
- Average Traditional Cap Rate: 1.9%
- Average Monthly Airbnb Rental Income: $2,900
- Average Airbnb Cap Rate: 4.1%
Condos for Sale in Orlando, FL: 215
- Median Property Price: $227,400
- Price per Square Foot: $166
- Average Monthly Traditional Rental Income: $1,410
- Average Traditional Cap Rate: 1.5%
- Average Monthly Airbnb Rental Income: $2,440
- Average Airbnb Cap Rate: 4.0%
Townhouses for Sale in Orlando, FL: 115
- Median Property Price: $307,800
- Price per Square Foot: $172
- Average Monthly Traditional Rental Income: $1,740
- Average Traditional Cap Rate: 1.5%
- Average Monthly Airbnb Rental Income: $2,420
- Average Airbnb Cap Rate: 1.9%
Multi Family Homes for Sale in Orlando, FL: 25
- Median Property Price: $385,700
- Price per Square Foot: $235
- Average Monthly Traditional Rental Income: $1,830
- Average Traditional Cap Rate: 2.3%
- Average Monthly Airbnb Rental Income: N/A
- Average Airbnb Cap Rate: N/A
Foreclosure Homes for Sale in Orlando, FL: 64
- Median Property Price: $253,700
- Price per Square Foot: $131
- Average Monthly Traditional Rental Income: $1,610
- Average Traditional Cap Rate: 3.4%
- Average Monthly Airbnb Rental Income: $2,340
- Average Airbnb Cap Rate: 5.3%

Just like in other top housing markets, single family homes dominate the Orlando real estate market, constituting as much as 68% of all Orlando, Florida homes for sale. Condos are the next most popular property type in the Orlando housing market with a 16% share, followed by townhouses (9% of all Orlando real estate listings) and multi family homes (2%).

Why Investing in Single Family Homes in Orlando

Real estate data reveals that single family homes are not only the most popular Orlando homes for sale but also a profitable real estate investment strategy. Their median price is just above the prevailing Orlando real estate prices, which means that rental property financing does not constitute an obstacle. One of the most important advantages which investors will experience with a single family home in the Orlando housing market is the ability to find the precise property which they are looking for in terms of price, size, number of bedrooms, number of bathrooms, features, rental income, and return on investment due to the multiple available options. Furthermore, landlords should not expect any major problems with this rental property type as single family homes tend to be rented by young professionals and small families who are reliable, good tenants paying rent on time and causing only minimal tear and wear.

Why Investing in Condos in Orlando

Condos for sale in Orlando offer a high return on investment in terms of cap rate and cash on cash return for both rental strategies: long term and short term. Condos enjoy lower listing prices, which means that they are an excellent option for beginner real estate investors as well as other property investors on a tight budget. It is important for Orlando real estate investors – similar to investors in any other location – to study carefully the rules and regulations of the HOA before investing in a condo. In this way they will make sure that they can use their investment properties as both long term Orlando rentals and Orlando vacation condo rentals.

Why Investing in Townhouses in Orlando

Investing in townhouses for sale in Orlando can also be a profitable real estate strategy. Orlando, Florida houses for sale are listed for significantly less than other property types in the local real estate market, and buying a cheap investment property can push your return on investment up. Townhouses, like single family homes, are known to attract good tenants, which means that late rate and maintenance costs will not be an issue for Orlando real estate investors choosing this property type.

Why Investing in Multi Family Homes in Orlando

Orlando real estate market analysis shows that multi family homes are the most profitable investment property type for traditional, long-term rentals in this location. Although not sufficient Airbnb data is available at this moment, multi family homes for sale in Orlando, Florida have the potential to bring a lot of cash as Airbnb Orlando rentals. Unlike other property types, multi family homes offer real estate investors a practical way of scaling up their rental business and buying multiple rental units within the same building. Hiring a professional property manager makes financial sense in this case, which means that multi family homes for sale in Florida can easily and quickly turn into a passive real estate investment strategy.

Why Investing in Foreclosures in Orlando

Whether you invest in a hot, top real estate market or a cold, slow one, foreclosed properties constitute an opportunity to buy an investment property for cheap and create a competitive advantage. The same holds true for Orlando, Florida real estate foreclosures.

Buying a foreclosed property to rent out in the Orlando housing market constitutes a very profitable real estate investment strategy. First of all, foreclosed homes for sale in Orlando are 46% cheaper than other Orlando real estate listings as they sell at below market value, which makes them an affordable and ideal solution even for beginner real estate investors who are usually on a tight budget. Second, because of the low sale price, foreclosures offer a much higher return on investment, whether used as short term rentals or long term rentals. Foreclosed homes for sale in Orlando, Florida are offered for only a fraction of what other properties are listed for, while bringing the same rental income. Buying cheap houses for sale in Orlando will immediately boost your return on investment – particularly in terms of cash on cash return – and make you a successful real estate investor.

Important Stats for Orlando Real Estate Investors

Safety in the Orlando Real Estate Market

Crime Rate Index: 5 (100 is highest)

Orlando is safer than 2% of US cities only, with a high overall crime rate of 64 crimes per 1,000 residents.

Access in the Orlando Real Estate Market

Walk Score: 42
Transit Score: 33
Bike Score: 55

Orlando is moderately walkable, has some public transportation, and is somewhat bikeable. Overall, the city is car-dependent as running most errands requires a car.

Affordability in the Orlando Real Estate Market

Cost of Living Index (Excluding Rent): 69
Rent Index: 39
Cost of Living Plus Rent Index: 55

The Orlando cost of living index excluding rent is 31% cheaper than in New York City. Rent is 61% less expensive than in NYC. Meanwhile, the average cost of living plus rent index in Orlando, FL is 45% below the level in New York City.

Taxes in the Orlando Real Estate Market

Average Effective Property Tax Rate in Orange County: 0.715%

Orlando property taxes are evaluated and paid based on the assessed fair market value of the property for residential properties. The average annual property tax value amounts to $1,788 in Orange County. Overall, Orlando, Florida real estate taxes are affordable and do not comprise a challenge for investors in the local housing market.

If you’d like to invest in states with no property tax, check out Hawaii, Alabama, Louisiana, West Virginia, and Wyoming.

Orlando Real Estate Market: Traditional Rentals

Average Monthly Rental Income: $1,700
Average Cap Rate: 1.8%
Price to Rent Ratio: 17
Renters’ Percent of Population: 65%
Optimal Property Type: Multi family home or single family home
Optimal Number of Bedrooms: 3 and 4
Traditional Rental Listings: 3,978
3 Best Neighborhoods for Traditional Rental Properties in Orlando: West Colonial, Rio Grande Park, and Roosevelt Park
3 Worst Neighborhoods for Traditional Rental Properties in Orlando: Dover Shores East, Kirkman South, and Florida Center

The Orlando real estate market 2019 has once again proved to be one of the best places to invest in real estate in Florida in specific and in the US in general. Traditional rental properties benefit from high demand due to the high proportion of renters (65%) and the median price to rent ratio in the Orlando housing market. Combined with the affordable prices of Orlando, FL homes for sale, this strong demand translates into good rental income and return on investment. Although a cap rate of 1.8% might not look like a lot to experienced property investors, it should be considered that this is only the city-level capitalization rate, while Orlando neighborhoods and specific long term rentals offer a much higher return on investment. While single family homes for sale in Orlando, FL dominate the local housing market, multi family homes provide the highest cap rate. Smart real estate investors should also look into foreclosed homes for sale in Orlando, FL as their low prices push return on investment up when renting out on long term basis. The optimal number of bedrooms for investing in a traditional Orlando rental property is 3 or 4.

Landlord-Tenant Law and Regulations in the Orlando Rental Market

Similar to Miami, Tampa, Jacksonville, and Fort Lauderdale, the Orlando real estate investors and landlords rights and obligations are determined by the Florida Landlord-Tenant Laws. Those investing in houses for sale in Florida to rent out on long term basis might already know that the Sunshine State is one of the most landlord friendly states in all of the US. For example, there is no limit on the size of the security deposit to be requested from tenants. However, it has to be returned within a month after the renter leaves the property. According to the Florida real estate law, rent is due on the first day of the month and should be paid within 3 days before a landlord can move forward with filing for an eviction. The Florida real estate laws and rules also stipulate that a landlord in the Orlando housing market can give a tenant an unconditional quit notice forcing him/her to move out within 7 days before the landlord can file for an eviction in case the renter has caused intentional damage to the property or repeatedly violated the lease in the past 12 months.

If you’d like to explore the real estate investment opportunities in the most landlord friendly states, check out traditional rental properties in Arizona, Texas, Indiana, Colorado, Georgia, Kentucky, and Alabama.

Best Neighborhoods in Orlando for Investing in Traditional Rentals

Orlando Real Estate Market Report 2019 Best Orlando Neighborhoods for Traditional Long Term Rentals

1. West Colonial

Median Property Price: $117,400
Price per Square Foot: $122
Average Monthly Rental Income: $1,440
Average Cap Rate: 6.9%
Walk Score: 35

The West Colonial neighborhood tops the list of the best Orlando neighborhoods for investing in a traditional rental property. Orlando, Florida real estate data shows that this area generates the highest return on investment for long term rentals. Investment properties in West Colonial cost only about a third of the price of other homes for sale in Orlando, FL. The median property price here makes financing a rental property an easy and affordable option. This is an urban neighborhood with a lot of amenities which features a high percentage of renters compared to homeowners.

2. Rio Grande Park

Median Property Price: $115,200
Price per Square Foot: $103
Average Monthly Rental Income: $1,150
Average Cap Rate: 4.8%
Walk Score: 40

The Rio Grande Park neighborhood ranks as #2 among the best neighborhoods in Orlando to buy a rental property for the traditional strategy. This is an urban area with excellent amenities and housing options which are good for families. Most residents are renters which means that rental demand for long term properties is high. Moreover, this is one of the best locations for cheap houses for sale in Florida, so beginner real estate investors should really consider this neighborhood. On average, investing in a rental property in Rio Grande Park offers a very good cap rate, and diligent property search can lead to an even higher return on investment.

3. Roosevelt Park

Median Property Price: $136,400
Price per Square Foot: $148
Average Monthly Rental Income: $1,250
Average Cap Rate: 4.4%
Walk Score: 54

The Roosevelt Park neighborhood is another profitable location for investing in traditional Orlando rental properties. This urban area is excellent in terms of amenities, housing, diversity, and nightlife. Roosevelt Park is among the most walkable Orlando neighborhoods. Moreover, prices here are below the average Orlando cost of living. This does not mean though that rental rates are low. To the contrary, the average traditional rental income in this neighborhood is high compared to the low property prices, which – as real estate experts know – leads to a high return on investment. Investing in real estate in Roosevelt Park makes for a profitable move in 2019, 2020, and beyond.

4. Monterey

Median Property Price: $169,900
Price per Square Foot: $154
Average Monthly Rental Income: $1,420
Average Cap Rate: 3.6%
Walk Score: 45

Monterey has been defined as one of the best places to live in Florida, which makes it also one of the best Orlando neighborhoods for renting out on long term basis. The Monterey neighborhood offers excellent amenities, housing, diversity, and schools, which means it is an ideal location for families with children. Buying an investment property in Monterey is a money-making real estate investment strategy with a good cap rate. Moreover, homes for sale here offer one of the best real estate values in Florida in 2019.

5. Millenia

Median Property Price: $203,100
Price per Square Foot: $137
Average Monthly Rental Income: $1,500
Average Cap Rate: 3.4%
Walk Score: 62

Millenia is another one of the good neighborhoods in Orlando to buy a traditional rental property. This urban area features excellent housing conditions, good schools, and high diversity. It is mostly populated with young professionals and families with children, most of whom rent rather than own a home. The Millenia neighborhood is definitely one of the up and coming locations for real estate investing in Orlando. Buying an Orlando rental property in Millenia can be very profitable.

6. Lake Holden

Median Property Price: $277,800
Price per Square Foot: $155
Average Monthly Rental Income: $1,520
Average Cap Rate: 3.0%
Walk Score: 57

Lake Holden is the last on this list of the best places to buy a long term rental property in the Orlando real estate market. Interested investors can find waterfront homes for sale in Florida here. Property prices are higher than in the neighborhoods listed above but are still below the median level for houses for sale in Orlando, FL. The Lake Holden neighborhood offers a truly urban experience with numerous amenities, restaurants, coffee shops, and parks and thus attracts young residents. A rental property investment in Lake Holden is a top real estate strategy in 2019 and 2020.

Orlando Real Estate Market: Airbnb Rentals

Average Monthly Rental Income: $2,740
Average Cap Rate: 4.0%
Average Occupancy Rate: 61.9%
Optimal Property Type: Single family home or condo
Optimal Number of Bedrooms: 4 and 3
Airbnb Rental Listings: 3,359
3 Best Neighborhoods for Airbnb Orlando: Rowena Gardens, Lake Formosa, and Lake Dot
3 Worst Neighborhoods for Airbnb Orlando: Lake Weldona, Delaney Park, and Eagles Nest
Orlando Airbnb Legal Status: Legal for owner-occupied short term rental properties while the Airbnb host is on site and no more than half the property is rented out. A short term rental permit from the City of Orlando is required.
Annual Events in Orlando with the Highest Airbnb Occupancy Rate:
- Orlando Mardi Gras: Saturdays and select nights in early February to late April

This is the best celebration of Mardi Gras after the original one in New Orleans and one of the main Central Florida annual events. The celebrations include live concerts, famous musical acts, a parade, street performers, and authentic Cajun food.

- Epcot International Flower & Garden Festival: mid-March to mid-May

This annual event attracts many families with children with its themed flower and garden displays, interactive kids areas, and live performances by hitmakers from the 1960s and 1970s.

- Epcot International Food & Wine Festival: October-November

Located at Walt Disney World, this culinary event features traditional food from over 25 countries.

- Florida Circus Parade: 30 December

This parade marks the two college football bowl games held in Orlando annually: the Russell Athletic Bowl and the Capital One Bowl.

- Florida Film Festival: mid-May

This major film event attracts thousands of film industry professionals and fans each year with premiers of independent and foreign movies.

- Orlando Film Festival: mid-October

In addition to independent movies produced around the world, this event also features parties and an awards ceremony.

- Mount Dora Art Festival: early February

This two-day street art event attracts over 300,000 visitors every year who come to see oil paintings, watercolors, acrylics, clay, sculpture, and photography by leading artists from across the nation.

The Airbnb Orlando, Florida rental market is one of the hottest nationwide. This comes as no surprise considering Orlando’s status of the Theme Park Capital of the World. In addition to leisure tourists, the city attracts business travelers as well due to its rank of a major industrial, business, and commercial hub. Because of the warm climate and the year-round festivals, parades, and other celebrations, a total of 75 million domestic and foreign tourists come to the city, which creates strong demand for Orlando Airbnb rentals.

In the past decade Orlando vacation rentals grew tremendously in popularity, which caused pressure on the local authorities to regulate and somewhat limit the further growth of the Orlando, Florida Airbnb business. As a result, while renting out Orlando vacation homes is not illegal, some strict rules have been put in place since 1 July 2018, and Airbnb Orlando, FL hosts have to conform with them in order to prevent legal problems. All in all, similar to other Airbnb Florida destinations, Orlando vacation rentals near Disney and elsewhere generate high return on investment. Single family homes and condos make for the most profitable Orlando short term rentals. Homes for sale in Orlando, FL with 3 and 4 bedrooms constitute the best real estate short-term investment strategy in the city.

Orlando Airbnb Laws and Regulations

The Orlando real estate market is one of those US locations which have experienced serious tightening of the rules and regulations governing the Airbnb rental business. New Orlando Airbnb laws came into force on 1 July 2018. While legalizing vacation rentals in Orlando, they prohibited non-owner occupied short term rentals in the city. The rules are very specific and stipulate that local Airbnb hosts can have up to one booking at a time, a maximum of four non-family members on site at a time, and no more than two people per room. Moreover, Orlando short term rentals can take up no more than half the size of the property, and the owner has to remain in the rental for the duration of the visit. In specific, one of the two housing units of a duplex can be fully rented out on Airbnb or similar platforms provided that it is of equal or lesser size compared to the other housing unit. As a result of these regulations, Airbnb in Orlando, Florida can serve as an additional source of income for part-time real estate investors but cannot be turned into a full-scale rental business. Nevertheless, locals or people moving to Orlando should consider buying a real estate property where they can live, while renting out a room or two to capitalize on the strong demand, high Airbnb occupancy rates, and solid return on investment.

In order to operate legally, Orlando Airbnb hosts need to apply for a short term rental permit from the City of Orlando. The first-year fee amounts to $275, while it drops to $125 for each subsequent year. Owners of Orlando vacation home rentals will recover this cost quickly, taking into consideration the high Airbnb rental income.

Those investing in an Airbnb Orlando property will also need to pay taxes. These include a 6% transient rental tax, a 0.5% county discretionary sales surtax (collected by the State of Florida), and a 6% tourist development tax (collected by Orange County).

Best Neighborhoods in Orlando for Investing in Airbnb Rentals

Orlando Real Estate Market Report 2019 Best Orlando Neighborhoods for Airbnb Rental Properties

1. Rowena Gardens

Median Property Price: $453,200
Price per Square Foot: $217
Average Monthly Rental Income: $9,910
Average Cap Rate: 17.4%
Average Occupancy Rate: 69.6%
Walk Score: 42

Analysis of the Orlando real estate market shows that the Rowena neighborhood ranks as #1 among the best Orlando neighborhoods for investing in a vacation rental home. Orlando short term rental properties in this area bring a really high return on investment, but the prices of Orlando houses for sale in this area exceed the city-level average. Rowena Gardens scores high in all major indicators such as housing, access to amenities, public schools quality, diversity, lifestyle, and nightlife. This is a small and lively neighborhood with many restaurants, coffee shops, bars, and parks, where the majority of the residents own their home. Renting out a part of their primary residence on short term basis can help them make money from real estate, taking advantage of the high Airbnb occupancy rate in the area. If you don’t own a home though, buying a property in Rowena Gardens to live in and rent out is a very profitable financial decision.

2. Lake Formosa

Median Property Price: $335,000
Price per Square Foot: $177
Average Monthly Rental Income: $6,500
Average Cap Rate: 14.2%
Average Occupancy Rate: 63.9%
Walk Score: 60

The Lake Formosa neighborhood is the 2nd best location for owning an Airbnb Orlando rental property. Prices of houses for sale in Orlando, Florida here are below the city-level median, while the Airbnb cap rate exceeds the city average as well as the average in most top real estate investing markets in 2019. Lake Formosa is a suburban neighborhood with prime living conditions including good schools, many amenities, and low cost of living. Finding waterfront homes for sale in Florida is an option in this area. Investing in an Orlando Airbnb rental in Lake Formosa will bring you high return.

3. Lake Dot

Median Property Price: $505,700
Price per Square Foot: $169
Average Monthly Rental Income: $8,000
Average Cap Rate: 10.9%
Average Occupancy Rate: 55.0%
Walk Score: 53

The Lake Dot neighborhood ranks as #3 among the good neighborhoods in Orlando for owning a short term rental property. Home prices here are higher, so this is a good area to look for Orlando, Florida luxury real estate properties for sale to live in and rent out on Airbnb. Importantly, Lake Dot is the 2nd most liveable location in the Orlando housing market as well as one of the safest neighborhoods in Orlando. These features make it one of the top locations for an Airbnb Orlando rental. Buying a home and a vacation rental in Lake Dot is a profitable real estate investment strategy, especially for beginners.

4. Azalea Park

Median Property Price: $220,000
Price per Square Foot: $123
Average Monthly Rental Income: $3,420
Average Cap Rate: 9.0%
Average Occupancy Rate: 68.8%
Walk Score: 57

Azalea Park is another top location for Orlando, Florida vacation rentals. Orlando homes for sale in this neighborhood cost significantly less than in the rest of the city, while the Airbnb rental income is high, which naturally leads to above average return on investment. The Airbnb occupancy rate in the Azalea Park neighborhood is also particularly high. Investing in real estate in Azalea Park is an option which everyone looking for a primary residence to rent out on short term basis should consider.

5. Timberleaf

Median Property Price: $398,200
Price per Square Foot: $396
Average Monthly Rental Income: $2,210
Average Cap Rate: 8.3%
Average Occupancy Rate: 56.0%
Walk Score: 24

#5 on this list of the best neighborhoods for owning an Airbnb income property in the Orlando, Florida real estate market is Timberleaf. This urban area features Orlando homes for sale priced a bit above the city-level average. Nevertheless, the Airbnb return on investment in the Timberleaf neighborhood is very high, while the occupancy rate is moderate. Buying an investment property in Timberleaf allows you to make money in real estate in 2019, in 2020, and beyond.

6. Spring Lake

Median Property Price: $482,300
Price per Square Foot: $214
Average Monthly Rental Income: $6,040
Average Cap Rate: 7.3%
Average Occupancy Rate: 48.3%
Walk Score: 25

Spring Lake is the last of the top neighborhoods for an Airbnb Orlando rental property on this list. This is a small neighborhood in the Orlando housing market where the predominant population is retirees owning their homes. Renting out on Airbnb is a profitable opportunity for them as well as the rest of the residents to make money from real estate. Property prices in the Spring Lake neighborhood exceed those in Orlando on average, but the capitalization rate for short term rentals is still high. Investing in a rental property in Spring Lake is a profitable real estate strategy.

Investing in Orlando Real Estate: Optimal Rental Strategy

As the above Orlando real estate market analysis 2019 demonstrates, an Orlando, Florida real estate investment is a smart move right now. Both long term Orlando rental properties and Orlando vacation rentals yield return on investment much higher than what other best locations for real estate investing can reach in 2019, and these positive Orlando, Florida real estate market trends are expected to continue in 2020 and beyond. Based on the cap rate and cash on cash return metrics, Airbnb Orlando rentals are more profitable than traditional rental properties. However, due to the Airbnb laws and regulations introduced in mid-2018, buying an investment property for the sole purpose of renting it out on Airbnb is no longer an option. While Orlando short term rentals are not totally illegal, they are only feasible for owner-occupied properties. This means that full-time real estate investors and those out of state cannot take advantage of the high return on investment which the Orlando Airbnb business offers. Instead, they should focus on investing in a long term rental in the Orlando housing market. If investors conduct detailed real estate market research, thorough property search, and in-depth investment property analysis, they can land a very profitable deal with this rental strategy.

Why You Should Invest in Real Estate in Orlando, FL in 2019: The Pros

There are many reasons why a profit-seeking real estate investor should turn to the Orlando housing market in 2019. To begin with, the Orlando real estate market was ranked as one of the top ones by PwC, which is an unquestionable sign of stability and trustworthiness.

Another factor favorable for Orlando real estate investors is the affordability of the local market. Many high rental income housing markets have become prohibitively expensive for individual investors. This is not the case with the Orlando housing market, similarly to the entire Florida real estate market.

Thirdly, demand is strong for both rental strategies. Orlando is home to many young people who tend to rent rather than buy homes. The population growth exceeds the national rate due to the diverse economy with numerous job opportunities. The endless tourist attractions in the Theme Parkthe Capital of the World create demand for Orlando vacation rentals too.

The combined effect of the Orlando, Florida real estate prices and the high rental demand translate into high return on investment there. Indeed, the cap rate for both long term rentals and short term rentals in the Orlando housing market exceeds the return which other top markets offer at the moment.

In conclusion, if your goal is to make money in real estate with rental properties in 2019, in 2020, and beyond, consider Orlando investment properties. To enhance your experience as a first-time real estate investor, hire one of the best Orlando real estate agents.

Why You May Not Want to Invest in Real Estate in Orlando, FL in 2019: The Cons

Overall, the Orlando real estate market 2019 offers opportunities which few other US housing markets do. Nevertheless, there are a few things which property investors should keep in mind when they decide whether to go for an Orlando, Florida real estate investment. The most important one is the Orlando Airbnb laws which prohibit non-owner occupied short term rentals. Still, the legislation introduced by the Orlando local authorities is not as bad as the regulations in the New York City real estate market, the San Francisco real estate market, the Las Vegas real estate market, or the Santa Monica real estate market.

Another thing to keep in mind when investing in real estate in Orlando is the high crime rate. This means that you will need to spend more than in other cities on safety and security systems and devices for your Orlando rental properties. At the same time though, the high profitability of investing in Florida real estate will compensate for the additional costs and produce positive cash flow.

Orlando Real Estate Market Forecast 2020

The Orlando real estate market forecast 2020 is very positive. The upward Orlando, Florida real estate price trends are expected to continue in the last months of 2019 and throughout 2020. Property investors can expect the Orlando housing market to be once again one of the top ones for both commercial and residential real estate investing. An Orlando housing market bubble is not going to happen any time soon. The booming economy, the population growth above the national average, and the increased interest in tourists will create even more demand for both long term Orlando rentals and Airbnb Orlando properties. Both short term and long term rental incomes are expected to go up as a result.

Additional Resources for Investors in the Orlando Rental Market

Best Orlando Investment Properties

With the help of an investment property calculator, you can search through the 1,338 Orlando, Flroida homes for sale and filter the ones which meet your criteria such as budget, property type, optimal rental strategy, and expected return on investment in a matter of minutes. A heatmap tool will provide you with a map of Orlando neighborhoods to figure out the best neighborhoods in Orlando to invest in rental properties as well as the Orlando neighborhoods to avoid for real estate investments. A Property Finder will help you find the best Orlando investment property depending on your preferred rental strategy and other preferences.

Orlando Real Estate Agents

Beginner real estate investors as well as those out of state and those looking for passive real estate investing should hire one of the top Orlando, Florida real estate agents. A knowledgeable and experienced Orlando real estate agent can help you find a good property, negotiate with property sellers, and close a deal.

Orlando, Florida Real Estate Auctions

If you’d like to consider investing in Orlando, Florida real estate foreclosures, you can check out this calendar for auctions as well as other foreclosure related events in Tennessee.

Property Management of Long-Term Orlando Rental Properties

Investing in traditional rental properties in the Orlando, Florida real estate market doesn’t have to mean becoming a landlord and dealing with all the daily work associated with it. Instead, you can hire a professional property manager to deal with all your duties and responsibilities, while you enjoy your passive rental income.

Property Management of Orlando Short-Term Rental Properties

If you want to turn your Orlando vacation rentals into passive real estate investments, choose one of the top property managers here to handle all responsibilities related to owning and renting out an Airbnb Orlando property.

Our Top Blog Posts for Investors in the Orlando Real Estate Market

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