Like many real estate investors, you’re probably always on the hunt for your next profitable Orlando investment property purchase. While you’ve probably heard that the most important factor in real estate is “location, location, location,” there are a number of criteria that can make any given location either good or bad, determining if it’s truly a profitable Orlando investment property, or not so much.
Therefore, when searching for a profitable Orlando investment property, it is essential to keep several factors in mind in order to determine whether that property will likely turn out to be a money maker or an investment flop.
In doing so, one of the primary keys is where the property location’s demographics. In other words, is the neighborhood itself in an area that is on an upswing or in decline? If you are unsure of how to answer this question, the factors below will help you in making that determination:
Employment – With regard to employment, does the location have many companies or businesses that are coming into the area, or are there more that are leaving it? If companies are coming in, are they creating new jobs for the residents? If firms are leaving, is this causing the residents to also move away in search of new jobs?
Housing Prices – Regarding home prices in the area, are the prices on an overall basis rising or falling? Are there an over-abundance of vacant homes and foreclosures, or does the area as a whole appear to be more upbeat and vibrant?
Crime Rate – How is the crime rate in the area? Is it rising or falling? If it is rising, what type of crime seems to be the most prevalent? Is this causing residents to leave the area? If the crime rate is falling, is this causing residents to move into the area due to safer living arrangements?
New Infrastructure – In the area as a whole, are there lots of new construction projects going on, or is new building at a standstill? What does the future look like as far as new projects?
The good news is that you can find the statistics you need to answer all or most of these questions on the internet! Websites like City-Data.com pride themselves on being able to offer a one-stop shop for neighborhood data like this. This is because it’s against the law in most states for a licensed real estate agent to advise you on demographics that could be misconstrued as opinion, such as the crime rate, school systems, and employment/average income of an area or neighborhood.
Once you have determined all of the factors above and answered these “nitty gritty” questions, you will have a much better idea about just how good the location of your potential investment property really is – as well as whether or not you should move forward with it.
Do you have questions about Orlando property management? Are you thinking of working with us? We can help give you tips on how to find great profitable Orlando investment property, as well as investment properties in the surrounding areas. And, because I’m also a CPA, I can assist you with other profitable tax-related real estate strategies as well. Don’t be afraid to reach out to us!