Rental Market / Near UCF ? (Orlando: short sale, real estate, cheap apartment)

[Edward26]

Hello,

So I'm 23 and just landed a job in Finance in Orlando, near UCF. I'm thinking on buying a 3/2.5 1800sq feet house near waterford center, its really close to ucf 5-15 min depending on traffic I guess.

I'm single and my expenses are very low, the full cost of the house would be around 33% of my total income, which is cutting it tight. I think I would only do good if I manage to rent the other two rooms, potentially to UCF students.

I'm wondering if anyone has any clue of what my actual chances of renting these rooms are. Obviously, the real estate agent said I would have no problem at all to rent the rooms August to May because of the location, convenience, safety feel of the community (gated).


Even tho this is my first post I have been reading the city data forums as a reference for years now and know there are a lot of knowleadgeable people here that offer incredieble advice. What do you guys think? I really want to jump in the market now and seize the opportunity of such low prices rather that keep renting (been renting since 2007)

Thanks!

[AONE]

I expect you will find it pretty easy to find roommates. each room should rent around 400-500. which includes their utilities... don't overlook that as an expense. the cost conscious would be far better on your expenses

[Edward26]

Thats good to know.

I keep hearing people on this forum keep posting do not buy, rent instead... anyone else has some input on this whole deal?

thanks!

[histmaj]

As far as renting goes, you should have no problems, as long as you advertise your vacancies well enough. I seem to always know people looking for a place to rent and renting rooms is generally the cheapest way to go.

On buying the place, if you have the money, and it doesn't set you in debt too much it could pay off as a fantastic investment in the years to come. UCF is continuing to expand and that will only create more demand for housing close to the university, especially if it is in a generally nice part of town.

[totsuka]

I think at your age, keep renting the nicest small 1 bedroom, cheap apartment you can find. Of course, keep an eye out for a short sale, foreclosure of a great home, not a huge home, but a great home. UCF is a great school, fully funded, but look at the local schools in your area too. How are they?

The problem we have now and going forward is we will all have to "follow the jobs" which means being able to move without being stuck with a home to sell. Orlando has a huge surplus of homes and that surplus won't shrink much for years.

Renting out to strangers is a "hit or miss" and sometimes it's a big miss. I had rental property for years and it is an "eye opening" business to say the least.

One big and this is really a potential killer for home owners in FL will be home insurance. The state wants to get out of the Citizens Insurance business or at least lessen it's exposure which is a good idea. Also, the state is allowing the insurance companies to raise their rates by 15 percent without any justification. So 1800 sq feet, 3/2/2, CBS 10 year old home, insurance is about 1500-2000 a year?...legally, the insurance company will let your rent out 1 room, but no more. If more, you have to get a commercial policy. You can lie, but if there is a claim, wham, no coverage. Commercial policy, usually double the cost. So figure you home insurance, worse case, could go up 10 percent a year "just because they can" and look out when we get hit with a hurricane anywhere in Florida. A home is more than a house note, insurance. You need to take care of it like a kid. The quality of many homes in FL is somewhat "shabby". Many homes were built during the boom and they just slapped them up with illegal labor that could care less about the quality. The older homes, the owners just don't take care of them, some even blow off changing an a/c filter. It is amazing what you can hide with a coat of paint and cheap carpet.

Considering your age, economy, future etc...rent...sit back, keep an eye out for the killer foreclosure, but in the back of your mind think "you know, I might have to move to VA to get a better job or job period so I had best have a very full bank account.