When you realize the potential returns of real estate investing in Orlando, it only makes sense to want to dive in immediately. It is true: becoming a landlord is an excellent plan to diversify your assets—and a money-maker.
However, success and failure are often decided before you even collect your first rent check. Consider:
- Your research choices
- Your willingness to invest in a stable property
- Your capacity to delegate tasks you no longer have time for.
Each of these elements will all have an impact on your Orlando real estate portfolio.
Making good purchase decisions—and picking the right first few properties—can be the path to sustainable success. Your choices will add up to long-term success for your real estate investment portfolio. Here are some rock-solid strategies to consider as you launch your real estate company.
"Easy" Money Isn't Likely to Pay Off
There are good reasons why people advertise homes for sale as a quick profit. If you see a sign on the side of the road or taped to the crossing light by a fast-food chain, it might seem to be promising a big opportunity—but be unable to deliver.
Part of the problem with these opportunities is that they seem pretty straightforward; you don't have to do a bunch of research: you can buy in right now! Most likely, these sellers would prefer for you to not to do your due diligence—since they rely on your inexperience.
Rather than going for the easy money, start tracking prices and vacancy rates in your area. Getting to know the market is the primary way to identify great deals reliably. It also gives you a data pool to work with when you start pricing your units to rent.
The Best Investment Groups Have a Proven Record
Look for investor groups who have successfully sold homes that go on to rent at competitive rates. You want to work with people who know the business and can get you a good deal without over-promising—and under-delivering.
Rather than trying to find a "diamond in the rough," get to know a variety of the best investors and real estate agents in your area. If they prove trustworthy and reliable, they can become your resource for the next few property investments. After all, they benefit when you purchase a property from them—and you benefit when the property they recommend generates an excellent rent rate.
Consider Turnkey Properties
While you may have some experience fixing things around the house, most people don't have a thorough knowledge of homes to be able to quickly or affordably "flip" homes. Consider that option if you are ready for it, but many first-time and growing investors should consider the ease of a turnkey property in Orlando.
When professional home flippers purchase the home, do the work on it, and then sell it to you as an investment property, everyone wins: you get a reliable, move-in-ready house, and the flippers get their payment for their work. Often, turnkey properties will already come "prepackaged" with tenants, which means you can start earning rental income right away.
When you look for a turnkey property, you can look into a particular house flipper and make sure he or she has a lot of experience in the field, and that the owners who purchased their properties are happy with the results.
Yes, you may not get the combined benefit of making money through flipping the house and money through rental payments, but you save yourself a massive headache. Having to seek professional assistance with a fixer-upper can eat into your profits—and you want to start your business on a sure thing.
Use a Property Manager's Services To Stay On Top of Everything
Property managers are more than just a great resource for finding tenants, collecting rent, and maintaining properties. They also have a lot of experience in the area and have their ear to the ground about shifts in the Orlando market.
Expert Orlando property management that tailors their services to your needs gives you the opportunity to devote more of your time to growing your business. This means you can focus on what matters when it comes to your growth, like getting the next property you need to expand your real estate investment portfolio.
Property managers in Orlando have a good feeling for what local renters demand, so they may help you improve or maintain your level of service to keep reliable, long-term tenants. They also understand how to carefully navigate the legalities of the landlord-tenant relationship for you—which means less hot water, and more passive income.
What you will most likely find is that having a property manager will help you make the big-picture decisions regarding your real estate investment, and leave the day-to-day execution of tasks to a team of knowledgeable professionals. This means that you have more time to yourself, to spend with family, to run another business, or to find your real estate investment. The last thing an investor with five, seven, or twenty properties needs is to answer midnight maintenance calls.
Verandah Properties is your Orlando expert, offering you the opportunity to put your real estate investment strategies into practice while we handle the delicate care of your tenants. If you're trying to grow your portfolio, why not download our FREE guide? It's full of useful tips that investors need to keep developing their long-term wealth through real estate.