Bellalago or Lake Cane - need advice (Orlando, Windermere: bank owned, short sales)

[kcaluwae]

Hi,

We're looking to buy an investment property in one of these areas. We still have some questions :

Which of both areas would you propose, which of both areas would be best for long term rentals and attracts most tenants? In which neighboorhoud will prices most likely increase the most?

Any advice would be appreciated!

Thanks for helping us out.

Kris

[GregTraub]

Wow talk about two completely different area's! Lake Cane in Dr. Phillips I'd say would attract more tenants simply because it is much closer to many more employers than Bellalago.

It's incredibly tough to say which neighborhood will appreciate the most because no one knows what will happen in the future, but I can tell you Bellalago has seen much worse depreciation than Lake Cane, and still has quite a few foreclosures and short sales to work through. So intuation tells you Bellalago may have more room to appreciate in the future, but it also says Lake Cane hasn't dropped in value for a reason (location) and thus will continue to be more desireable than Bellalago.

If your only choosing between the two you really have to figure out what your risk tolerance and ROI requirements are. Bellalago will be more risky but possibly provide more upside (and possibly allow for a smaller investment as price points are lower). Lake Cane will likely be less risky but may not provide as much of an upside (and the prices are higher for older homes).

If it where my money however, I would expand where I'm looking to more than those two area's. I've mentioned the East Orlando area around UCF on the forum before, and I still beleive it's one of the best area's to invest for long-term rental. Lower price point for entry, great location for employers, good schools, +UCF students, plenty of newer or older homes to choose from, etc....

[kcaluwae]

Thanks for your answer.

Actually the house is in Shadow bay springs. Does that makes a difference??

thanks

Kris

[GregTraub]

Not really, though looks like there are homes priced lower there than Lake Cane. Another thing about the area is you are getting pretty close to Metrowest going that close to Conroy-Windermere Rd. Still an ok area though.

[44nutman]

Bellalago is tanking so you might be able to get a deal. The actually have the Isle of Bellalago across the street which they stopped doing any new construction and you can get a house over there really cheap. The problem with Bellalago is the subdivision thinks it is something that is it not, so I dont know if you can have tenants. All the subdivisions on Pleasant Hill are getting killed with REO's, some of the REO rates are over 50% and that is based on researching MLS with some of the realtors not listing their properties as Bank Owned when they are Bank Owned.
The REO rate in the Lake Cane area is 27% currently which is about average for central florida. There is a listing in Shadow Bay for $139,000 right now which would be a good deal. You could make your mortgage by renting it. It would be easier to rent then Belalago and you could probaly get more rent than Bellalago.

[OrlandoTaxi]

When it comes to investments, there's two major venues in this country. Stocks & Real Estate.
You make money both ways in the same manner. You buy at the lowest possible, then you sell at the highest possible. One thing we know for sure, is that we're not at the bottom yet. If this is truly an investment, this is not the time to buy. Ride it out a little more. Prices are going down in Central FLorida every day. Good news today is, that you have access to MLS now. It's free for everybody. You no longer need an agent to search MLS. (Just google - Mid Florida MLS) The best way to know, when we hit bottom, is to watch the inventory of homes. AT this point inventory is still going up. I actually get a monthly email with report from Orlando Realtor Association. Watch for inventory to start going down, at that point, it's probably the best time to buy.

Ex. When market was booming, MLS inventory was only around 10,000 homes, which creates demand(Prices go up). At this time, i've seen inventory over 25,000 homes(too much supply) prices go down.

[shokazulu]

bella lago you can definitely buy more house for the money and the security for the most part will keep it safe