Rental Markets and Investment Opportunities for Orlando and Central Florida
The large numbers of people being displaced from their homes in the past few years due to foreclosures and short sales has brought about excellent investment opportunities in rental properties.
This is supported by the latest housing data which shows that multi-family units (aka apartments and townhomes) are on the increase for building permits issued.
During the boom years of not long ago, investors were relying on appreciation for either all, or a large part, of their returns. When that component evaporated with the crash – so did the investment return. Appreciation is but a footnote now.
But the significant decrease in prices of homes has enabled many of them to actually cash flow in a written proforma sans the appreciation component ! As long as the assumptions of vacancy rate and expenses are reasonable and realistic, many properties on the market today will actually cash flow and throw off spendable cash returns. Unique to real estate, generally, much if not all of the return can be initially shielded from taxes by depreciation.
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