# Rental in Orlando Florida



## digitalatlas (Jun 6, 2015)

Anyone ever looked into this or have done it? Is this feasible? I dont mean a cakewalk, nor do I mean you'd have to win a lottery, but is there any reasonable prospect of success? 

This is an intentionally open ended question, as I have done some preliminary research and have some thoughts myself, but what do you think?


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## none (Jan 15, 2013)

be more specific


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## mikep (Mar 13, 2017)

digitalatlas said:


> Anyone ever looked into this or have done it? Is this feasible? I dont mean a cakewalk, nor do I mean you'd have to win a lottery, but is there any reasonable prospect of success?
> 
> This is an intentionally open ended question, as I have done some preliminary research and have some thoughts myself, but what do you think?



I've looked into it before. your best bet is to message a few people with for rent ads where you are considering and chances are 1 of them will let you pick their brain.
I was looking into one of those turn key ones where they rent it for you, management on site etc etc. I was told you won't have any cash flow to put towards the mortgage. the management company will make sure of it. they'll be making all kinds of repairs.. replacing towels.. all kinds of ****.


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## Just a Guy (Mar 27, 2012)

Florida is one of the states that has higher property taxes for foreign ownership. There are more investor friendly states down there.

There are also issues specific to Florida that you should be aware of, things that don't happen in Canada (hurricanes for example, being a drug entry state and swampland is another that quickly comes to mind), other states have their own issues (termites). It's not something to jump into without some homework.


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## naysmitj (Sep 16, 2014)

I rented a house in Orlando in February with kids and grandkids, through airbnb and was surprised at the number of houses available and the low costs to rent a relatively new house with pool.
Not sure how the owners make out with these houses.


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## My Own Advisor (Sep 24, 2012)

Just a Guy said:


> Florida is one of the states that has higher property taxes for foreign ownership. There are more investor friendly states down there.
> 
> There are also issues specific to Florida that you should be aware of, things that don't happen in Canada (hurricanes for example....)


Agreed.

Why not rent when travelling or vacationing?

This way, you keep the liabilities with the owner and not you. Turn the key, enjoy, hand in key - walk away. If you don't like the experience, don't go back. 

Lots of competition for landlords now in our sharing economy (i.e., using Airbnb, VRBO, etc.). Lots of risk being a landlord now and going forward and not very liquid asset either.


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## OhGreatGuru (May 24, 2009)

Judging by the wording of OP's obscure question, he is talking about investing in a rental property in Florida, not renting a vacation home for his personal use. You will note he has not bothered to clarify his question.


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## digitalatlas (Jun 6, 2015)

Thanks for your replies. Yes, I was referring to the feasibility of purchasing and investing in a rental property, not renting a vacation home for personal use.

As I said, it was an intentionally open-ended question. I was also hoping for some replies from anyone who's actually purchased an investment property and their thoughts (is it a good idea, bad idea, makes money, doesn't make money, why or why not, beware of tax issues, etc.) about this kind of investment going forward. Some of you have addressed some of those issues, so thank you. 

But it seems from your replies so far that it's perhaps not the best investment idea


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## Just a Guy (Mar 27, 2012)

To answer your series of questions...

Is it a good idea?
Depends on what you buy and how much you pay.

Is it a bad idea? 
Depends on what you buy and how much you pay.

Does it make money or not make money?
Depends on what you buy and how much you pay.

Why or why not?
Because each property is individual, it's not like the stock market where everything has one price. There is no one answer which applies to all situations. 

If you buy in the wrong location, the wrong property, pay too much, choose the wrong tenants or manager, the economy tanks, etc. Then the property will most likely lose money. 

If you buy a bargain in a high demand area that is well built and maintained, get quiet tenants who always pay on time, have an honest property manager, then you could make a fortune.

Reality usually lands somewhere in between. Remote property ownership has a whole lot more issues than local ownership, foreign ownership adds even more issues. If this was a "1st purchase" in real estate investing, I certainly wouldn't recommend it, start local and build up some experience. 

Real estate investing is a lot more than buy and collect profits, there's a lot of work involved. Well paid work usually, but not always.


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## My Own Advisor (Sep 24, 2012)

I used to own a rental property here in Ottawa. A lot of work, although somewhat (not hugely) profitable. So...it was a good idea (not great); made some money (not lots); had stress (not good); had complications with tenants (not good at all); has tax issues (some); has tax benefits (a few)...etc.

In terms of multiplying the complexity and doing this in a foreign country, I personally wouldn't do it but your mileage and goals likely vary. Good luck with the decision!


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## kcowan (Jul 1, 2010)

I would suggest you track down Canadian owners of a condo in Orlando. They are your only source of real information.

Pattie Lovett-Reid rationalizes buying in Florida
I chatted with her about estate taxes and non-resident fees (of which she knew nothing) before going through with their purchase. Of course, the Florida realtor mentioned nothing about any of it.


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## Mortgage u/w (Feb 6, 2014)

My advice is to buy inland and cater to locals. Leases are long term and tend to be more steady. You should still be able to pick up a small semi-detached for under $100k USD. You can expect about $1500 / mth. There are several Canadian banks down there that will finance you. Once all said and done, you can expect a healthy return on your investment.

I also suggest you hook up with an RE agent down there that caters to Canadian investors. They are usually a one-stop-shop where they will find you the property, coordinate the transaction and manage the rental for you. Obviously there is a management cost for that but your income will easily offset that. Its a hands-off experience.

And lastly, get yourself a good accountant that is experienced with foreign income since you will need to declare it all. You can also consult a lawyer if you have specific legal concerns.


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## tavogl (Oct 1, 2014)

My sister bought a duplex in Orlando FL. when the economy tanked. Bought for 40k and the property cash flow is $300 after all expenses. No major complications so far. She's been to her property twice in 10 years.


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## kcowan (Jul 1, 2010)

Is that $300 per year? IOW 0.0075 or 0.75% ROI before capital gains?


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## tavogl (Oct 1, 2014)

300 a month positive cash flow. Taking into consideration it's been rented from day 1. no big issues other than changing carpeting.


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## Capital Investor (Jun 26, 2017)

digitalatlas said:


> Anyone ever looked into this or have done it? Is this feasible? I dont mean a cakewalk, nor do I mean you'd have to win a lottery, but is there any reasonable prospect of success?
> 
> This is an intentionally open ended question, as I have done some preliminary research and have some thoughts myself, but what do you think?


Just joined the forum and saw your question.

I own a number of long term rentals in Florida that in Orlando. Though, I bought a few years ago when prices were lowered, but I think there are still opportunities, or you're getting better return than you can in Canada.

For example: A $64k 2 bedroom condo at Walden Palms in zip code 32811 can be rented for $1000/month 

Condo fee is a little on the high side, $400/month, Taxes, is $100/month, Insurance is approximately $50/month, property management is @10% or $100/month. So you're looking at cash flow of approximately $350/month or $4200/year or 6.5% cash on cash return with it all managed by a property manger. Though, what should be pointed out is 2 bedrooms units at this complex was sold for $250k in 2007, and I can see once they have replenished the reserve funds, Condo fees should come down and there should be some room for prices in the complex to move up.


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## digitalatlas (Jun 6, 2015)

I did speak with a couple people here who have done it, friends and acquaintances, though I don't know very many. They have had generally positive experiences, but they bought a few years ago. There are lots of aspects that would be different than where I am, like flooding for example....

One of my questions, I guess all the time with any rental, is who's renting? If the selling prices are so (relatively affordable) down there, how is there a supply of renters? Do you necessarily assume more risky renters? I know that's a huge generalization, because there are excellent renters who can't afford to buy or simply have a better reason to rent than to own. But I think it's a legitimate question. If let's say you can buy something for less than 100k and it costs $1000 per month, why wouldn't the person buy instead of rent?


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## Just a Guy (Mar 27, 2012)

So, the "successful" investors bought around the time of the correction in US real estate and they are doing well...

Today is different. I'm not saying you can't find a good deal and make money, but make sure you're really thinking clearly about your comparables.

It would be like saying JAG buys multiple properties every year, so real estate must be a great investment, I can go buy anything...ignoring the fact that the properties I find are very rare in this market and definitely not typical. The majority of places on the market currently in Canada, for example, wouldn't make a good investment long term.


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## sags (May 15, 2010)

I have seen no evidence that anyone can buy property cheap and immediately rent it out for high rents.


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