Investment and Vacation Real Estate - Orlando, Florida

Would-be homebuyers are sitting on the sidelines now, and many are spending their time in rentals despite the housing bargains out there. It could be a great time to buy a house to rent.

• Vacancy rate: 7.9%
• Average rent: $871  

With rents that have risen only 0.2% in the last year, Orlando, Fla., really is the most magical place on Earth.

"That's not much to call home about if you're a landlord," Canalog says. "The condo-conversion boom that happened during the housing boom really went bust as well, and the condo flippers ended up being reluctant owners who, if they haven't been foreclosed upon, probably ended up renting the properties out."

That's nobody's idea of a dream vacation, and it's turned into a nightmare for Orlando. A place best known for trying to sell happiness is hurting just as much as Sin City's adult playground in the desert -- and, like Las Vegas, is bottoming out. Median existing-home prices have dropped 7.6% in the past year and from $209,000 to $120,000 since 2008. The city's 0.68% foreclosure rate still ranks among the country's top 50.

Tourism continues to bolster Orlando's business and has helped drop the unemployment rate from 11% a year ago to 9.9% today, but that's still above the national average. With that kind of instability, having rent that likely won't move too much can be a nice consolation. 

Source: Money.MSN.com

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