Orlando/Central Florida is a top choice for out-of-state real estate investors due to its strong tourism industry, population growth, and favorable tax laws. If you’re considering investing in Orlando, here’s a hot list of some of the best communities and neighborhoods to target for investment properties.
1. Lake Nona
- Why It’s Great: One of Orlando’s fastest-growing neighborhoods with high-end homes, innovative medical facilities, and a planned urban design.
- Investment Type: Single-family homes, luxury condos, and townhomes.
- Tenant Profile: Professionals, families, and healthcare workers.
- Average Home Prices: Higher than average but appreciates well.
- Rental Type: Long-term rentals only
- Projected ROI: 4–6% annually (strong appreciation, stable rents)
- Avg. Investment Budget: $500K–$800K+
- Key Draws: Medical City, high-end homes, strong tenant pool, proximity to Orlando International Airport, high rental demand
- Cash Flow Estimate: Break-even to +$200/mo
- Notes: High appreciation, low maintenance, excellent tenants — but high upfront costs limit cash flow.
- Sweet Spot Property: 3–4 bedroom SFH or townhome ($550K–$750K)
2. Davenport / Champions Gate
- Why It’s Great: Popular with short-term vacation renters and near Disney.
- Investment Type: Short-term rentals (Airbnb/VRBO), vacation homes, townhomes.
- Tenant Profile: Tourists and vacationers
- Average ROI: High occupancy rates, especially during peak tourist seasons.
- Rental Type: Short-term rentals allowed
- Projected ROI: 7–10% annually (high STR demand + occupancy)
- Avg. Investment Budget: $300K–$600K
- Key Draws: Vacation rental hotspot, resort-style communities/amenities, Golf courses, proximity to Disney and I-4.
- Cash Flow Estimate: $800–$1,500+/mo (after expenses, depending on occupancy & seasonality)
- Notes: Many homes cash flow positive even with 20% STR management. Pools and themed rooms = higher nightly rate.
- Sweet Spot Property: 4–6 bedroom vacation home ($400K–$500K)
3. Kissimmee
- Why It’s Great: Tourist hotspot known for its proximity to Walt Disney World and other attractions.
- Investment Type: Vacation rentals, short-term rentals, single-family homes.
- Tenant Profile: Families, tourists, vacationers
- Potential ROI: Excellent for short-term rental investors
- Rental Type: Short-term rentals allowed
- Projected ROI: 8–11% annually (top STR location in Orlando)
- Avg. Investment Budget: $275K–$550K
- Key Draws: Proximity to Disney, affordable properties, high tourism traffic, vacation rental demand.
- Cash Flow Estimate: $1,000–$1,800/mo
- Notes: One of Orlando’s top STR zones. High occupancy potential if near Disney and well-furnished.
- Sweet Spot Property: 3–5 bedroom townhome or pool home ($350K–$550K)
4. Winter Garden
- Why It’s Great: Historic charm combined with a booming suburban lifestyle.
- Investment Type: Single-family homes, townhomes, and condos.
- Tenant Profile: Families, retirees, and young professionals.
- Average Appreciation: Strong property appreciation over the last 5+ years.
- Rental Type: Long-term rentals only
- Projected ROI: 5–7% annually (strong appreciation + family demand)
- Avg. Investment Budget: $450K–$700K+
- Key Draws: Historic charm, vibrant downtown, great schools, desirable for families. Proximity to theme parks, strong school system, vibrant downtown
- Cash Flow Estimate: $100–$300/mo
- Notes: Solid tenant demand, low vacancy, and rising rents help offset higher prices.
- Sweet Spot Property: 3-bed home near downtown or Horizon West ($450K–$600K)
5. Dr. Phillips / Bay Hill
- Why It’s Great: Upscale, desirable community close to Orlando’s major attractions.
- Investment Type: Luxury homes, condos, and townhomes.
- Tenant Profile: High-income professionals, golf enthusiasts.
- ROI Potential: Higher-end investment but can yield strong long-term appreciation.
- Rental Type: Primarily long-term rentals
- Projected ROI: 4–6% annually (luxury market appreciation)
- Avg. Investment Budget: $600K–$1M+
- Key Draws: High-end tenants, Universal proximity. Close to International Drive, golf courses, and fine dining.
- Cash Flow Estimate: Likely negative to break-even (-$300 to +$100/mo)
- Notes: More of an appreciation play. Hard to cash flow with luxury prices unless 50%+ down.
- Sweet Spot Property: Condo or entry-level SFH ($600K+)
6. Downtown Orlando (Thornton Park, Lake Eola Heights)
- Why It’s Great: Urban lifestyle with a mix of modern condos and historic charm.
- Investment Type: Condos, townhomes, apartments.
- Tenant Profile: Young professionals, millennials, and remote workers.
- Average Home Prices: Mid to high-range, but rental demand remains high.
- Rental Type: Mostly long-term rentals
- Projected ROI: 5–6% annually (urban rental demand + steady appreciation)
- Avg. Investment Budget: $350K–$700K
- Key Draws: Walkability, professional renters, condo-friendly, vibrant nightlife, and cultural hotspots
- Cash Flow Estimate: $150–$400/mo
- Notes: Strong renter demand and higher-than-average rents help balance costs.
- Sweet Spot Property: 2-bed condo or townhome near Lake Eola ($375K–$600K)
7. Clermont
- Why It’s Great: A growing suburban area with increasing demand for single-family homes.
- Investment Type: Single-family homes, townhomes.
- Tenant Profile: Families and commuters.
- ROI Potential: Strong long-term growth as Orlando’s suburbs expand.
- Rental Type: STR allowed in certain zones
- Projected ROI: 6–8% annually (emerging STR + long-term potential)
- Avg. Investment Budget: $350K–$550K
- Key Draws: Excellent schools, proximity to theme parks, Lake Minneola (Lakeside living), growing suburb, tourist spillover
- Cash Flow Estimate: $600–$1,200/mo
- Notes: Lower entry cost than Kissimmee, but not as consistent year-round occupancy. Great for hybrid LTR/STR.
- Sweet Spot Property: 3–4 bedroom home near lakes or Disney corridor ($325K–$450K)
8. Hunter’s Creek
- Why It’s Great: Established planned community with family-oriented amenities.
- Investment Type: Single-family homes, townhomes, and condos.
- Tenant Profile: Families, professionals, and retirees.
- ROI Potential: Strong demand for long-term rentals.
- Rental Type: Long-term rentals only
- Projected ROI: 4–5.5% annually (stable income, low turnover)
- Avg. Investment Budget: $375K–$500K
- Key Draws: Master-planned, desirable for families, parks, and proximity to major highways
- Cash Flow Estimate: $100–$300/mo
- Notes: Very desirable for tenants; low vacancy and consistent rent payments.
- Sweet Spot Property: 3-bed SFH ($375K–$450K)
9. MetroWest
- Why It’s Great: Popular with young professionals and families.
- Investment Type: Condos, apartments, and single-family homes.
- Tenant Profile: Professionals and college students.
- ROI Potential: Steady rental demand with moderate appreciation.
- Rental Type: Mostly long-term rentals
- Projected ROI: 5.5–6.5% annually (affordable entry point + college proximity)
- Avg. Investment Budget: $225K–$400K
- Key Draws: Proximity to Universal Studios, Valencia College (college renters), affordable condos, and entertainment
- Cash Flow Estimate: $300–$600/mo
- Notes: One of the best cash-flowing LTR spots. Affordable condos with strong rent demand.
- Sweet Spot Property: 2-bed condo near Valencia or Universal ($225K–$325K)
10. Avalon Park
- Why It’s Great: Family-friendly master-planned community with strong community ties.
- Investment Type: Single-family homes, townhomes.
- Tenant Profile: Families and professionals.
- ROI Potential: Long-term appreciation with steady tenant demand.
- Rental Type: Long-term rentals only
- Projected ROI: 5–6.5% annually (steady rent demand + appreciation)
- Avg. Investment Budget: $375K–$525K
- Key Draws: Tight-knit community, excellent schools, parks, and amenities.
- Cash Flow Estimate: $150–$350/mo
- Notes: Well-maintained community with stable tenant base.
- Sweet Spot Property: Townhome or smaller SFH ($375K–$500K)
11. Orlando 32821
- Why It’s Great: Located near major attractions like SeaWorld, Disney, and the Orange County Convention Center, this area is a condo-hotel and resort-style hotspot.
- Investment Type: Condo-hotels, vacation rentals, short-term rental condos, resort-style properties.
- Tenant Profile: Vacationers, international travelers, business convention guests, families.
- Potential ROI: Strong for short-term investors seeking low-maintenance properties in high-demand zones.
- Rental Type: Short-term rentals allowed (zoned for STR in many condo-resorts).
- Projected ROI: 7–10% annually (varies by resort and property management).
- Avg. Investment Budget: $180K–$400K
- Key Draws: Walkability to theme parks, resort-style amenities, hands-off management, year-round tourism.
- Cash Flow Estimate: $900–$1,600/mo
- Notes: Ideal for out-of-state investors seeking a turnkey short-term rental. Some properties are cash-only or require specialized financing due to condo-hotel classification.
- Sweet Spot Property: 2-bedroom condo-hotel unit in a resort like Lake Buena Vista Resort or WorldQuest ($225K–$350K)
✅ Pro Tips for Out-of-State Investors:
- Short-Term Rentals: Orlando 32821, Kissimmee, Champions Gate/Davenport are ideal. Highest potential cash flow and great ROI with resort communities. 🔑💸
- Long-Term Appreciation: Downtown Orlando, MetroWest, and Avalon Park are best for young professionals. Strong rents, solid cash flow, long-term appreciation. 🔒💼
Ready to invest in Central Florida? Now you know which Orlando neighborhoods deliver the best returns! Whether you’re targeting cash flow or appreciation, there’s an opportunity waiting.
Email me at soldbyshatondra@gmail.com for a personalized property list!