Buying property in Orlando - Holden Heights (Kissimmee, Belle Isle: rental market, crime)

[MNCold]

Hello all,
I'm considering buying a property in Orlando area. We'd like to purchase a property as a 2nd home and rent it out while it is not in use. We will visit it one or twice a year for a week or so.

1. Our budget is under 100K.
2. Near by or b/t Colonial Vietnamese town where we love to eat and Kissimme - where we would like to have fun. (within 1/2 hr drive to either place).
3. We would like a yard because I love tropical fruit and would like to plant some there.

We saw a property in Craiglist within our price range in Holden Heights.
It is currently rented and so we will be able to make even or a little cash flow on it. I looked at the location in the map and it is betwen Colonial Vietnamese town where we love to eat and Kissimme - where we would like to have fun. So location wise, it sounds really good for us.
I saw couple posting mentioned that this is a very bad area. Can you tell me how bad it is? Also, I saw that median price in this area is about ~50K. Is it because nobody wants to live there?

Based on my search, it is an unincoporated community. What does this mean? Is it a bad thing?

If Holden Height is a non-desirable area. Do you know of any area that would fit our criteria?

Thanks.
MN Cold

[Broker Dave]

To rent out and then use a few weeks a year you should be looking toward areas zoned short term rental, that would be in and around the Disney/Kissimmee.

Outside of these areas everything is zoned long term (6 months 1 day or more), the largest group of tenants don't want to move more than one time a year so you are trimming you rental pool.

Broker Dave

[MNCold]

Ah. I didn't know about the zoning thing. We can proabaly just use it between tenants moving in and out. When we have a tenant move out, we will probably use it for couple weeks or so before putting in a new tenant. Otherwise, we wouldn't mind to stay in the hotel or rent a place temporarily. We want to get to know Orlando better before getting a permanent place.

[Broker Dave]

There are a lot of great areas each having its own character, I have one of the few professions enabling me to enjoy exploring these areas in my daily travels and I learn something new every day.

I remember my first time driving through the area on Rt. 50 lined with Vietnamese restaurants and grocery store on my way to the Thursday night urban bike ride. It was a while before I had the time to try the restaurant as the urban started around 6:30 and ended about 11:00 but when I did the food was great.

But then I got hooked on Thai, Italian, Mexican, Indian etc… there are so many great restaurants in Orlando that I’m sure the area you choose will have great food and friends just down the road.

Broker Dave

[annerk]

HOlden Heights is no where near Colonialtown OR Kissimmee. It's in a crappy part of town, butts up against one of the most dangerous parts of Orlando. The only tenants you're going to get in an area like that are the one's you don't want--especially as an absentee landlord. Like you said, nobody that has a choice otherwise wants to live there. If you aren't in town to handle problems, you're going to have to pay a management company to take care of things, and that's going to cost you $$$.

Can you afford this home without the rental income? If the answer is "no" then you can't afford the home. Don't let any Realtor tell you otherwise.

Where in "Kissimmee" do you go to have fun? There's Old Town, but that's about it. If you are talking about the Disney complex, it's not in Kissimmee, it's in Lake Buena Vista. Don't let those Kissimmee marketing folks tell you otherwise. Kissimmee overall isn't such a great place to live--or hang out.

There aren't many desirable areas in your price range. You "might" find an older, smaller home in Belle Isle or maybe Colonialtown. But remember, you get what you pay for, and the less desirable the area, the less desirable the tenant pool is going to be.

[MNCold]

Ah. I learned another new thing today. I have always thought that Disney is in Kissimmee.
I'm glad that you told me.

By the way, what is Coloniatown. Does the Vietnamese restaurants area on Colonial street part of this Colonialtown?

[cfIfan]

We have our differences but i have to completely agree with you on all counts.

My best recommendation to you is if you are going to be relying on rental income in any way then you shouldnt consider purchasing. Now is a great time to buy with their being great priced homes available, but in the rental market there is no guarantees and if you are going to overstretch yourself in purchasing a property and need a rental income then i would wait until such time as you are in a position without needing the income. That way if you do rent it out then it is a bonus.

There are a great many areas in between the areas where you want to be which afford affordable homes in your price range. But you likely will be looking at townhomes unless you do go for the short term rental areas such as Davenport/Kissimmee. Keep in mind as they are on the whole zoned short term rental there will be quite alot of tourists so it is a transient area to begin with and of course where there are tourists with cash there will be an insavoury element aswell to a certain extent.

Also the area you mentioned as Annerk said is not a great area. But as i tell all my clients that is subjective and depends on what you are looking for. I personally wouldnt choose to live there as there is quite a bit of crime along there, but when your in town i would recommend taking a drive in the area.

Originally Posted by annerk

HOlden Heights is no where near Colonialtown OR Kissimmee. It's in a crappy part of town, butts up against one of the most dangerous parts of Orlando. The only tenants you're going to get in an area like that are the one's you don't want--especially as an absentee landlord. Like you said, nobody that has a choice otherwise wants to live there. If you aren't in town to handle problems, you're going to have to pay a management company to take care of things, and that's going to cost you $$$.

Can you afford this home without the rental income? If the answer is "no" then you can't afford the home. Don't let any Realtor tell you otherwise.

Where in "Kissimmee" do you go to have fun? There's Old Town, but that's about it. If you are talking about the Disney complex, it's not in Kissimmee, it's in Lake Buena Vista. Don't let those Kissimmee marketing folks tell you otherwise. Kissimmee overall isn't such a great place to live--or hang out.

There aren't many desirable areas in your price range. You "might" find an older, smaller home in Belle Isle or maybe Colonialtown. But remember, you get what you pay for, and the less desirable the area, the less desirable the tenant pool is going to be.