Brenda: Pamela, I have seen the rental market really take off in the past three years and investors have noticed, too! With all the foreclosures and short sales in the past few years, many who have lost their homes are now renting. And the owners often like to stay in their same communities so their children can attend the same schools. Renting has become a very good option for many families. What have you been seeing with your buyers?
Pamela: I have seen an increase in the number of calls I get from investors and for good reason. The monthly rental income can cover the mortgage and HOA dues at today’s home prices. The average principal and interest payments have fallen below the average rental rates, so to an investor, it makes financial sense to purchase a property and rent it out.
These past two years have been especially busy with investors buying bank-owned properties. For an investor, the banks will consider a cash transaction over a sale, which needs to be financed in many cases. A cash transaction can close typically in two weeks, which gets the bank their money much faster.
Brenda: I agree, and there is a very strong market of renters looking to live in East Orlando, no question! The short sales and foreclosures continue to come on the market but at a much slower pace, and the renters are looking for homes that cannot be easily found. Many existing homeowners have taken advantage of this market in the past four years and have upgraded to a larger home. I have had several of my clients buy larger homes in foreclosure or a short sale and rent out their existing, smaller homes. This definitely starts to build a good real estate portfolio for them and their families.
Pamela: Brenda, you are correct stating that rentals are not easily found. As of July 19, there were only 21 active rentals in the Waterford Lakes, Eastwood, Stoneybrook and Avalon Park communities on the Multiple Listing Service. The rental rates currently fall between $1,095 a month for a two bedroom, two bath townhome to $2,395 a month for a six bedroom three-and-a-half bathroom pool home.
I have counseled my investors that now is the time to purchase an investment property and rent it out as the market is very strong for rentals. And renters are now mainly families who have lost their homes, unfortunately, and need a place to live in the same community.
Brenda: Remember, our monthly free short sale seminar for sellers and buyers is from 10-11 a.m. Saturday, Aug. 13 at 3680 Avalon Park Blvd., Suite 120, Orlando. Become educated on short sales with real estate attorney Karen R. Spell, P.A. and Chit N’ Chat and get all your questions answered.
Brenda Kolbrich, Licensed Realtor, CRS
Keller Williams
407-963-6876
Brenda@TopOrlandoHomes.com
Pamela Rehbein, Licensed Realtor, GRI
Keller Williams
407-488-4078
Pamela@HomeforyourHeart.com