Orlando Fix And Flips Jump In Popularity
With the city and state receiving a large influx of new residents from areas like New York and California, savvy real estate investors have taken advantage of the heightened interest from home buyers. The increase of demand combined with record low inventory has made Orlando a hot seller’s market that benefits investors looking to fix and flip houses. Homes are currently spending an average of 28 days on market, which is a 38% decrease from the previous year and gives valuable insight into how quickly property is selling in this market.
As of January 2021, the average home sale price in the city reached $280,000, which is a nearly 8% increase from the previous year. Approximately 1,035 homes sold in the last month, marking a nearly 9% increase from the previous year and highlighting a stable and consistent growth rather than a rapid, unpredictable growth. With the average sale prices rising and number of homes sold steadily increasing, this city is going to continue being a good market for fix and flip real estate investments. If you’re ready to finance your Orlando fix and flip loan, contact us today.
Orlando New Construction Filling Inventory Gaps
The record-low housing inventory in Orlando and the rest of Florida has led to many experienced contractors and builders taking advantage of the market. As of January 2021, homes are currently selling for approximately $164 per square foot, which represents a 7% increase from last year and can lead to a high ROI for builders that can source their materials directly to reduce costs. Single-family homes and condominiums are being built at a rapid pace to keep up with new demand and are usually selling before construction is even complete- many of these homes are selling based on blueprints and location alone!
It’s always important to understand the needs and demands of the market you’re building in, and right now the city is seeing specific trends from home buyers. The most popular home listings online include features such as two bathrooms, two stories, and storage areas. Data like this helps builders get a sense of what home buyers in the area are looking for so they can design their home to meet the market’s needs. If you’re an experienced investor and ready to be approved for our hard money new construction loan in Orlando, contact us today.
Orlando Rental Market Remains Healthy
With so many new people moving to the city from outside the state, many of these new residents are looking to rent property rather than own so they can see how much they like the area or wait for permanent residences to become available. Investors can take advantage of this increased rental demand by figuring out which neighborhoods people want to live in and creating a nice living-space that could attract a premium monthly rent price.
One of the major trends occurring in real estate investing is the BRRRR method, which is an acronym that stands for buy, renovate, rent, refinance, and repeat. The plan is in the name, where an investor will purchase rental property and renovate it to increase its market value before renting it out at a higher rate. Once the monthly income starts to generate, the investor then refinances the loan and uses the newly acquired capital to repeat the process by purchasing their next rental property and going through the steps again. This BRRRR strategy helps generate passive income and create long-term wealth and is an excellent investment strategy for areas with low vacancy rates and high population migration. If you’re looking to expand your rental portfolio with our Orlando rental loans, contact us today.