We get a fair amount of "pure investors" that ask us "What's going to make us the most money?", which is not really a fair question to ask when investing in real estate. Buying the property "right" is key, and there are hundreds of real estate investing books that go into much deeper detail than I would in a blog post. If you're reading this and you're purely looking at a vacation home in Orlando as an investment, and you will never use the property yourself, I'll save you some reading. A single family home is the most popular and desired type of property that guests are looking for when planning their vacation. Your rental revenue is almost always going to be higher when comparing the same number of bedrooms between the three types of homes. With that said, let's jump into what makes the different types of properties appealing to different buyers, and what's important to note before purchasing each of them.

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Condo

Many buyers that look to invest in Orlando, have some previous experience with owning a condo at the beach or even in the mountains on a ski resort. They're familiar with them, and in many of these beach or mountain locations, condo's are a home run for rentals. There's only so much beach front real estate, and only so much real estate surrounding a ski resort. This certainly plays to the rules of supply and demand, as everyone wants to be right on the beach, but inventory is very limited. Orlando is a different breed altogether. 

Condo's in the Orlando area are pretty much always in a resort setting, which is fantastic. Guests coming to Orlando truly are looking for that resort experience while on vacation. If guests chose to have a relaxing day instead of going to the parks, they want to grab a drink at the tiki bar, stretch out by the pool, and enjoy the Florida Sun. Resort communities are almost always gated in the Orlando area, giving both vacation home owners and guests peace of mind while they're at the resort. Resort communities also provide other amenities such as a convenience store, a club house with game rooms and fitness centers, and sometimes shuttle services to shopping and restaurants.

Another benefit of the condo is that it's the cheapest option to own and operate in most cases. The square footage is less, meaning that heating and air conditioning is often less. Many times cable and internet are included with the HOA or condo association fees, and water is included as well. Property prices are cheaper as well, lowering the barrier to entry into the vacation rental market, and keeping property taxes lower as well. Lastly, there is no roof or foundations to worry about, eliminating a huge portion of potential maintenance cost.

Lastly, no matter where you visit around the world, it's always nice to have a view. Whether that view is over a city, into wilderness, or of the Disney fireworks, it's always a huge plus to the value of the property. A view in a single family home in the Orlando area, isn't really possible in the Orlando area  (unless your right next to the fireworks show), so you have to build vertically to get it. One particular example of the benefits of a view in Orlando is in Vista Cay Resort. Vista Cay only offers condos and townhouse options and has beautiful small lakes on the perimeter of the resort. The townhouses are three stories, so they do get a bit of a view as well. However, nothing rents better in Vista Cay than the 4th story condos with the lake view. From the 4th floor condo balconies, you can look over the lake towards Lake Buena Vista, with a stunning view of roller coasters, ICON park, and a fireworks show at the end of the day.

Briefly, we'll also run over the cons of a condo. First, in Orlando for most cases, it is the lowest rental income producing option. A 3 bedroom single family home with a pool will almost always outperform a 3 bedroom condo. Supply and demand. Second, the HOA and Condo Association fees are high, resort amenities come at a cost. Third, there's less privacy sharing up to all four walls with other condos. Fourth, the floor plans are small and usually only big enough for one family, with little natural light. Fifth, condos are less customizable with hardly any recreational space to get creative with decor. Sixth, its almost always harder to obtain financing with a condo. Seventh, some condo resorts in Orlando don't have elevators, making rental rates suffer terribly for 2nd and 3rd floor units, even if they have a view.

Here are the major vacation rental communities offering condos in the Orlando area: Vista Cay, Storey Lake, WIndsor Hills, Bahama Bay, Bella Piazza, Tuscana, Caribe Cove, Oakwater, Terrace Ridge, Bella Toscana.