Thinking of buying investment rental property in Orlando (Lakeside, Windermere: foreclosures, leasing)

[Leea8888]

Any advice for a Canadian looking to buy a rental property in The Orlando area for investment purposes? What would be the pros and cons of a resort community? Villa versus condo? Thanks!

[GregTraub]

1. Get advice from a tax attorney as to what you need to setup in order to correctly operate an income property in the U.S. as a foreign national. This will save you lots of time and headaches later as well as reduce your withholding burden. Also to help plan estate issues.

2. Determine your investment objectives and risk tolerance. What kind of returns are you looking to achieve and over what time period? Are you financially strong enough to absorb losses in bad months to enjoy higher returns on the good months, or would you prefer a property that would have a more stable income but not as high a return?

3. Will you need to finance or will you be purchasing cash? If financing talk to a lender as mortgages to non-U.S. residents can be limited but not impossible.

4. Find yourself an agent to help you locally, always keep an eye on your own interests though, some agents would rather sell you something quickly that may not really fit with your investment objectives. Some from the want for a quick buck, but many more simply because they do not understand investments.


There are ALOT of details on pro's and con's of any particular property type. Most come down to Fixed expenses and future appreciation potential.
In my opinion, I find resort communities used exclusively for short-term rentals have high fixed expenses (variable too) and limited, but unique appreciation potential. Because of this I view them as higher risk investments whos returns are very sensitive to economic conditions.
Less sensitive properties would be those used as long term rentals in desireable area's. Expenses are lower than Short-Term properties and income is more predictable/steady.

[Leea8888]

Thanks Greg. What are some desirable neighborhoods for longer term rentals?

[sunnyisfl]

Originally Posted by Leea8888

Thanks Greg. What are some desirable neighborhoods for longer term rentals?

Lakeside Condominiums along 535 in Windermere has a ton of foreclosures. They are beautiful 2 and 3 bedrooms with a clubhouse etc. The HOA fees are high. There are also some townhome foreclosures in Summerport, on 535 and Fiquette Road. They are beautiful, (Ryland builders) and are 3 and 4 bedrooms! Good prices for now.

[tworent]

Originally Posted by Leea8888

Thanks Greg. What are some desirable neighborhoods for longer term rentals?

If you have to ask then you are not an experienced investor to buy investment property out of state. It sounds easy from 1200 miles away unless you are an experienced investor were you live you will sure fail from 1000 miles away.

[tworent]

Originally Posted by sunnyisfl

Lakeside Condominiums along 535 in Windermere has a ton of foreclosures. They are beautiful 2 and 3 bedrooms with a clubhouse etc. The HOA fees are high. There are also some townhome foreclosures in Summerport, on 535 and Fiquette Road. They are beautiful, (Ryland builders) and are 3 and 4 bedrooms! Good prices for now.

All dogs you will lose money as a rental

[sunnyisfl]

Originally Posted by tworent

All dogs you will lose money as a rental

Well there not dogs! You're talking a desirable area, 4 miles north of Disney in beautiful neighborhoods.

[tworent]

Originally Posted by sunnyisfl

Well there not dogs! You're talking a desirable area, 4 miles north of Disney in beautiful neighborhoods.

Never said it was not a desirable area to live I said it was a dog for a rental. For the price of a unit, high HOA, lost interest on your 20% down payment you will lose money. Not saying a great deal is not to be had but you need to know the market like the back of your hand not 1200 miles away Don't forget all the house being rented below market because they have not paid the mortgage in a year. Sorry Its not a hot area for rentals I bought 3 houses last month all had 8 plus bids on the property the first day on the market.Ask yourself why in that area the house are not flying off the MLS.

[Starrman69]

Leea8888,

You've a lot to consider. You'll need to locate a good agent and along with what Greg (good info) had mentioned;

You'll need a good, reliable property manager (individual or firm) to oversee leasing, repairs and maintenance.

If you're considering short term, tourist traffic, the expense of upkeep, furnishings (and replacement).

Residential; families or seniors, allowing pets?

Also important as they say in realty; "Location, Location, Location"

[sunnyisfl]

Originally Posted by tworent

Never said it was not a desirable area to live I said it was a dog for a rental. For the price of a unit, high HOA, lost interest on your 20% down payment you will lose money. Not saying a great deal is not to be had but you need to know the market like the back of your hand not 1200 miles away Don't forget all the house being rented below market because they have not paid the mortgage in a year. Sorry Its not a hot area for rentals I bought 3 houses last month all had 8 plus bids on the property the first day on the market.Ask yourself why in that area the house are not flying off the MLS.

They have some of these condos as low as 43K! These sold two years ago for 230K! Then in summport, example of one, they have a Ryland built townhouse 4 bedrooms sold in the 300's in 2007, asking 130K! So if you bought one, you don't think you'd make anything with rent? Just asking.