Are you a small investor? Are you looking for Orlando investment properties, such as single family rentals (SFR)? Most single family rentals are purchased and sold by small investors. Yet, this cottage industry began to change after the housing crisis in 2008 as institutional investors (buying/selling greater than ten houses per year) and foreign investors entered the market to purchase homes with lowered prices.
As an example, the Blackstone Group, a private equity company, invested well over five billion dollars purchasing 50,000 SFRs after the 2008 housing crisis. Foreign investors boosted their investments in United States SFRs by over $100 billion in 2016. Additionally, Real Estate Investment Trusts (REIT) have also grown in the SFR industry since returns from rental property investments have outpaced lackluster returns from other investments.
These more cutting-edge investors helped to create a new type of broker to buy/sell SFRs. Some of the more notable ones include Investability.com (an ally of Real Property Management offices), OwnAmerica, Roofstock, VIPhomeshop, and others. Through use of their online systems, large and small investors are no longer limited to Orlando investment properties, and can search for investment rental properties across the country based on geography, cap rate, price, and additional criteria. Furthermore, because a rented property is more valuable than a vacant one, the listings regularly include these investment opportunities.
While the arrival of institutional and foreign investors might have stirred brokers to create new systems, the interesting aspect is that small investors, who have been drivers of the rental market industry, might be those who benefit the most. The small investor no longer needs to search in just the local community for investment properties. Now an investor can find numerous rental properties fitting investment criteria while still comfortably at home.
Would you like to learn more about our Orlando property management services? Please contact us for more information.
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