Orlando is considered the best destination in the world to invest in Vacation Homes have income through short-term rentals. Orlando is also considered the best place to buy a second home, according to Forbes Magazine. Vacation Homes income-producing properties that allow short-rent rent with no restrictions (days, weeks, months or years). They are located in specific zoning of the city, usually regions close to theme parks and main attractions of Orlando. In this article we will comment on the types of Vacation Homes and what are the best investment options. After all, does a Single-Family home offer an expected return greater than a Townhome? Why? Keep reading to understand.
What is the difference between Apartments, Townhomes and Single Family Homes?
In the article Condos, Villas, Townhomes, Single-family! Do you know the difference? I explain in detail what is the difference between the types of property. Basically, an apartment is a property in a building, a Townhome is a semi-detached house (there is a common wall between the buildings that separates each property) and Single Family Homes are separate houses (single-family homes).
What is the best type of investment property in Orlando?
First of all, it is worth clarifying that the guidelines in this article are limited to the Orlando market and region. For Miami or other Florida regions, market characteristics and behavior are different.
What is the best type of property?
I already wrote here on the blog that bigger houses tend to have a higher return as well. This is because a house with 4 or 5 bedrooms can accommodate groups of people. Usually tourists arrive with family or groups of friends. A bigger house, in addition to accommodating more people, also offers more amenities, a bigger kitchen, a swimming pool, a bigger outdoor area, etc. For the owner, the return is greater and for the guest, the price of the daily rate is often even more economical, since it will be shared between several people.
There is also the “competition” factor. There are fewer large houses on the market compared to townhomes or apartments. The owner of a 5 or 6 bedroom single-family home will compete with a reduced number of similar properties. A 3-bedroom townhome, on the other hand, will face greater competition.
In this sense, a 4 or 5 bedroom single-family home tends to offer an expected higher return than a 3 bedroom townhome or a 2 bedroom apartment.
Of course, you can’t generalize. This scenario can be different depending on the condo.
A 5 bedroom townhome for example is an excellent deal, even in relation to single-family houses, depending on the condominium where it is located and considering that there are very few townhomes of this size on the market.
And in Miami? What is the best type of property to invest in?
I will take the opportunity to comment a little on the Miami market as well, since there it is also possible to invest in properties aimed at short-term rental. It turns out that in Miami, there are not many options for real estate geared to this practice. Miami is very strict in its rental rules and the few new condominiums that allow short-term rental are located in Downtown. There are basically three: YotelPad, Legacy and Natiivo.
You won’t find vacation homes to buy in Miami, like in Orlando. Miami is a city more focused on buildings, even for bringing a more urban and cosmopolitan atmosphere. The apartments offered by these three mentioned properties are much smaller in area, when compared to the vacation homes available in Orlando.
The three projects offer basically the same standard and business format. The option would be to buy real estate in other condos in Miami, older, which also allow the practice. They are few and need to be “panned” in each neighborhood. One is the Yacht Club in Aventura.