Our economic problems at home keep us from seeing the value in our own market based on our own fears. But with the current prices, increasing rents, decreasing inventories, and a growing market, it appears to be the perfect storm for buying property in Orlando.
Orlando is one of the key markets being targeted because of the availability of distressed properties, and because it has one of the highest cap rates in the country — 8.2% compared with a national average of 5.4%. A cap rate is the rate of return on a particular investment — in this case, rental properties.
In markets like Orlando that experienced high foreclosure rates, as well as price reductions of more than 50%, investing in rental housing has become the silver lining in the housing market today.