For many, Florida is the land of possibility. Well, maybe the weather has something to do with it. But, you know, vitamin D is a great mood booster.
But still, Florida is a great state to start looking at if you’re a real estate investor for many different reasons—all jokes aside, the data we have for 2022 confirms it.
The State of Florida, specifically cities like Orlando, is looking at a prosperous time ahead for the economy and rental market, which means that purchasing an Orlando investment property (in this case, a duplex) will come with some exciting pros.
However, as with everything else in the world, the cons will join the party (spoiler alert: if you choose to work with an Orlando property management company, some cons will be taken off your plate).
What’s a duplex, and why is it attractive?
A duplex is “2 houses for the price of one” or multi-family property. Essentially, a duplex consists of 2 units that come as a package when you make the payment.
You can either live in one unit and collect rent from the other one (owner-occupied duplex) or have two rent incomes from two families living in each unit.
Either way, your tenants can cover your mortgage AND generate profit as passive income for you every month (well, passive if you work with an Orlando property manager). That’s where the attractiveness for real estate investors comes from.
Orlando, Florida, has many opportunities to purchase a Duplex rental property, especially in the Downtown Orlando neighborhoods.
Pros of purchasing a duplex investment property in Orlando, Florida
The data tells a positive story:
As we’ve mentioned above, the data regarding Orlando, Florida, and its significant cities show us that the state is in a continuous growth from many different points of view:
- People from high-tax and high cost of living states are rushing to Orlando for more affordable housing, work opportunities, and increased quality of life overall. According to Roofstock, in 2022, renters will occupy 55% of the Orlando housing units. That’s fantastic news for real estate investors like you.
- The unemployment rate has decreased starting in January 2022, with a 3,4% rate in February 2022 (previously 3,8% in January 2022). We all want tenants that will be able to pay rent on time, right?
- Orlando’s economy is flourishing – from significant-tech and manufacturing companies to huge entertainment companies like Disney and ending with prestigious Universities; Orlando’s tenants are well-educated employees and employers.
The story is this: Orlando is a fantastic location to invest in a duplex because the properties are appreciated. In addition, you’ll get good tenants (if you have the right rental property management company), and the city has a general growth tendency.
A Duplex Has Many Benefits in Orlando, Florida.
- Two rental units at the price of one
Even though a duplex unit is generally smaller than a single-family house, it can be more affordable to buy a duplex than two single dwellings.
- Two incomes
If you don’t live in one of the units yourself, you have a significant cash flow consisting of 2 rent payments per month.
- More attractive to certain types of tenants
Many tenants prefer smaller spaces, whether because it’s a small family, a couple, an individual, or just because they’re more affordable. A duplex unit can give a cozy, home-y feeling to these types of tenants without handling the struggles of taking care of a big home.
- Easier, more cost-effective maintenance
Since the units are very close to each other and they’re smaller, maintenance won’t be a pain.
On top of that, if you work with a property management company in Orlando to handle everything while you sit back and do your thing, you’ll be in for a treat. Passive cash flow without stressing about property management? Yes, please!
Cons of purchasing a duplex investment property in Orlando, Florida
Location is essential for accurate rent pricing, a profitable area, growth rate, etc. Moreover, the locations are fewer than single-family homes with a duplex, making it very resource-consuming.
Working with an Orlando property manager like The Listing Orlando that knows the ins and outs of the market will be your best bet to:
- Remove the headache of research about areas and pricing
- Come up with a price that’s satisfactory for you AND that attracts the right tenants as fast as possible,
- Have the property managed from A to Z without you lifting a finger.
A duplex also means no location diversification, as the units are in the same area. For the same reason, however, property management services tend to be more cost-effective and efficient because there’s no need for traveling between tenants. Always looking for the bright side, right?
More Tenants To Manage
One of the essential steps in ensuring your duplex investment is successful is assessing the property as effectively as possible.
Orlando has excellent duplexes, but you should do your due diligence (yourself or with the help of an Orlando property manager) and make sure that the property won’t cost you much more than you thought.
If you don’t, you’ll end up with tenants that constantly call you for problems—and it’s double the trouble in a duplex!
It looks like duplex units are more likely to be left by tenants than single-family homes.
Tenants that live in smaller units are generally more flexible (i.e., a couple that wants something larger at some point, individuals that travel, students that move out, etc.), so you can wake up to a call that tells you one of them your income streams is gone.
However, there’s are two upsides:
- You won’t be 100% left with no cash flow, as the other unit is likely to still have tenants in it,
- In Orlando, especially with the help of a rental property manager, you’re likely to find new tenants quite fast.
How does an Orlando property manager help?
If you are a real estate investor, it can be very beneficial to use an Orlando property management company to assist in purchasing or managing your duplex rental property.
Whether you are a local investor or out-of-state rental property owner, property managers can assist with advising you on things such as the best areas to purchase a rental property or provide Free Property Management Analysis for each of your rental homes.
Professional property managers in Orlando will provide services such as:
- Purchasing an investment property
- Provide Rent-Ready suggestions
- Market your rental property
- Find a Quality Tenant
- Provide Full-service Property Management
- Rent collection
- Rental property repairs
- Lease renewals
- Rental financial reporting
As a local property management company in Orlando, Florida, we’ve seen rental property owners benefit from having a property manager to advise them and guide them to owning and operating a successful rental property.
Orlando Property Management Summary
Real estate investments are the most attractive ones on the market, with the potential of fantastic ROI for the investor. However, if it were easy, everyone would do it. However, if you know and understand the pros and cons of purchasing a duplex, you’ll be much more likely to succeed.
If you want to remove the stress, the headaches, and the overwhelming responsibilities of owning a rental property, working with the property management experts at The Listing Orlando will take the pressure off you.
It can’t hurt to take a look, right? So, Contact Us and see how we can help. We’ve been the trusted source for Orlando property management for years and would be happy to assist you with buying a duplex or rental investment property.