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Real estate in Orlando Florida

Invest13

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Jul 22, 2009
Messages
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Hello REIN members,
I`m considering purchasing at least a 3-bedroom residential property in Orlando, Florida. I heard prices have really dropped and it`s a great investment opportunity. I`m wondering if anyone has experience in purchasing in that area and could share some insight.
Thank you,
Ivona
 
Be very careful to investigate insurance rates. Some areas have rates as high or higher than $5000/ year.
I do not remember the details regarding the sale of a Florida home in my father in laws estate (Canadian) but do remember the state/legal system took a huge chunk of the sale price.
 
consider in a US purchase

a) mortgageability
b) withholding taxes to foreigner
c) property taxes for non-residents
d) taxes on sale
e) exchange rate
f) management
g) tenant profile
h) distance
i) termites
j) mold
k) hurricanes
l) moisture
m) deterioration
n) racial profile of neighborhood
o) rents for the area
p) utility costs such as A/C, water, sewer
q) rental upside
r) location upside
s) how and when to exit .. and its costs (realtor fees, legal fees, taxes, escrow agency fees ..)


Research it very carefully .. and after 3 or 4 physical inspections and trips to the area to compare values and all the issues mentioned.

This makes likely sense only if you wish to have this as a 2nd home, likely not as a single investment due to the factors and cost involved !

Ditto in Arizona, California, Georgia, Texas, Belize, Mexico, Costa Rica, Hawaii .. all nice places with "postcard weather" when the sun shines .. but no one (certainly not the promoter) shows the hurricanes, the termites, the mold due to humidity, the 3rd world like conditions in the wrong neighborhoods, the crime, the drugs, the taxes (while holding and when exiting), the exchange rate risk .. so consider the issues .. and the upside .. then decide .. it may make sense .. often it does NOT !!
 
Thank you for this very throughout information, I`m new to real estate investing and this is very helpful. Thanks again.
 
QUOTE (Invest13 @ Aug 21 2009, 10:09 AM) Thank you for this very throughout information, I`m new to real estate investing and this is very helpful. Thanks again.

my parents live in florida and I bought a duplex. getting great cashflow...all going to my mom. Market was crazy, worse than Edmonton in 2006. I haven`t seen my property value fall that much
 
Hi Brian.

i am not sure where i saw a video and read an article that Don and Russ had here for us members.

what they say is that the prices are still yet to come down in the USA. must see video before you buy now.



tahani
[email protected]
 
QUOTE (tahani @ Sep 1 2009, 06:16 PM) Hi Brian.

i am not sure where i saw a video and read an article that Don and Russ had here for us members.

what they say is that the prices are still yet to come down in the USA. must see video before you buy now.



tahani
[email protected]

I`m not buying. I already own, my parents live in Orlando. The last duplex sold in the area has shown that prices hasn`t fallen that much. Single family homes is another story. On my parents street there are two abandoned houses..Seems most people in Florida weren`t born their. US has a very mobile workforce...people just went back to their home state..or somewhere
 
Hi Brian,



I bought a condo townhouse in Winter Garden, Orlando in July this year. I intended to use it as an investment property. The townhouse has 2 bedroom, 2.5 bath and a nice 2 car garage. It is built in 2006. It hasn't rented yet and I have to rely solely on my property manager, who was recommended to me by a friend. Could you shed some light on how you find renters in a remote area as Orlando? Thanks so much in advance.



Lizzie
 
Reread my post above .. From 2 years ago ! Buying a property in a remote area with severe surplus inventory, a weak economy and ex-migration is not a great base for wealth creation. It is the opposite, in fact ! Buy where the market has immigration, jobs, a decently diversified economy with upside and you will be a successful investor if all you do is pay market, rent at market, manage impeccably, pay down your mortgage and then sell 5, 10 or 15 years hence. Don't chase low prices .. Follow a proven strategy such as that taught by REIN.



One such strategy is called "Solid Oak Marketing" to successfully rent a home. Apply that to an empty home: i.e. creative ads, nice home, appropriate (low ?) rent to fill it.
 
Thomas has provided good advice above - but not so good advice for Lizzie who already owns the place and wants to make a go of it



Lizzie - Try spending lots of time contacting locals in the area of your rental - realtor's, mortgage brokers, lawyers (someone divorcing selling there house might be looking to rent), local companies - and offer incentives if they can get someone signed up and staying there - and ask for feedback on what it'll need to rent out (maybe company has manager coming in for 6 months and requires only 6 month term + furnished but is willing to pay a premium)



I've been able to, and seen many other have success, with doing this... but it takes work.... and willingness to be flexible to get a deal done
 
Thank you very much Adam. Your advise is very helpful. I do have quite a few contact in Orlando when I bought my property. I have a personal friend as well. I should have taken proactive action a bit earlier...Anyway, thank you and I will let you know the ending of the story hopefully soon. Lizzie
 
Adam's advice is very good. I'll just add a brainstorm that I had, which may or may not fit your situation. Depending on the location/amenities (ie pool, etc) of your place, could you use it as a vacation rental? Orlando is a big tourist attraction, and you might be able to rent it for more if you rent it by the week to tourists.



Downsides would be more maintenance, management, expenses (you need utilities/cable in your name), and way more vacancy.



Just a thought that may or may not fit your circumstances, but has the potential to be a big win.



Best regards and good luck!



Michael
 
Hi Michael,



The property I bought is in a long-term residential community that is not allowed for short-term rental/vacation rental. They have different zoning in Orlando, FL. And my original objective was to rent long-term to local professionals.



The townhouse was just rented to a local grocery store manager. My property manager was very confident that she will stay there for a few years as her store is just 2 miles away and her closest family members are in the neighborhood, too.



Thank you Adam and Michael for your kind advise!



Lizzie
 
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