Arguably the most important factor to evaluate when selecting a real estate syndication investment is the local market of the target property. The age-old axiom of Location, Location, Location has stood the test of time for good reason. Investors should target markets with growing populations and employment opportunities which leads to higher rent prices. Combine this with business-friendly environments and a low relative cost of living and you have a winning formula.
The market we will be exploring today is Orlando, Florida.
Market Overview
Orlando is home to nearly 300,000 people while about 2.6 million residents live in the greater metropolitan area (Kissimmee, Winter Garden, Apopka and St. Cloud)
The GDP of Orlando is more than $147 billion, increasing by more than 60% over the last ten years
Florida is ranks #2 for best states for business in 2021
Disney’s Magic Kingdom, Universal Studios, Disney’s Hollywood Studio, SeaWorld Orlando, Disney’s Animal Kingdom, and Disney’s Epcot are a few of the top rated entertainment centers and theme parks in the Orlando area
Major colleges and universities in Orlando include University of Central Florida, Florida A&M University, Florida State University, and Valencia College
Orlando is home to a diverse set of industries including FinTech, Life Sciences, Aerospace & Defense, Healthcare and Advanced Manufacturing with 80% of employment outside of Hospitality and Tourism
Orlando International Airport (MCO) is the second-busiest in Florida providing service to nearly 50 million national and international passengers each year
Key Real Estate Investment Drivers
Rent prices in Orlando have increased 13.3% since the start of 2021,
Orlando is ranked as one of the best places to buy rental property in 2021, based on key investment criteria such as cash flow, affordable property prices, and a growing population and job market
45% of the housing units in Orlando are occupied by renters as it is one of the least affordable places to own a home in the US
Orlando’s job growth was 11% over the past three years, with nearly 129,000 new jobs added to the economy.
Job growth is projected at 19% by 2030, nearly double the rate of the US
The Orlando region is projected to add 1,500 people each week and reach a population of 5.2 million by 2030
Income growth in Orlando is 13.5% annually, with a median income of close to $60,000
The cost of living in Orlando is 5% lower than national average
Orlando ranks #2 for best cities to start a career, driven by strong professional opportunities and highly rated quality of living
As we can see from the data, Orlando checks many of the boxes that real estate syndication investors are looking for in a local market. Finding the correct property and sponsor are still critical components of a successful no-hassle, hands-off investment, which is where our company can help.
And if you’re interested in learning more about investing in a real estate syndication, download your free copy of our eBook, Achieving Financial Freedom by Investing in No-Hassle, Hands-Off Real Estate