First time with new construction: Cape Coral, FL

[Don Miller]

Hey guys,
This post is mainly just to share where I'm at with this process, provide opportunities for myself to network with others in the area, and so I can periodically update.  I have connected with several members doing new construction or with boots on the ground in Cape Coral, so thanks to all of you that have discussed and answered questions from me so far.
Here's where I'm at:
-Connected with Rent to Retirement in November/December 2021 to discuss the area and opportunity.
-Closed on build contract January 2022 on a 4/3 (Build price itself is 246k).
-Closed on Freshwater canal Lot February 2022. (39k with closing costs).
-(All in construction+lot cost is 285k before loan and closing costs).
-Sent Deposit to builder February 2022. (13.5k) 
-Surveys, Site Plan, Septic Design approval initiated: February 2022
-Completed Survey/Design Package completed and sent to city of Cape Coral: June 2022
-As of August 2022, Permits are still under review by city.  Most submissions are under "Approved" status, but permit not formally issued.
-Lender currently has an estimated valuation of 410k for the property.


The hope is to buy and hold, LTR.  Current projected rent: ~$2450/mo

Needless to say, it has been a very interesting time to build.  We are excited, at times frustrated, and have a healthy level of anxiety, but all of those elements were expected from the start.

I'll try to keep this thread updated, as it has always been helpful for me to read others' experiences.

-Don

[Jordan Ray]

Looking forward to further updates @Don Miller

[Don Miller]

Doors, windows, sliders delivered.
Front door installed.
Septic completed and passed private inspection.
Power is connected.
Culvert scheduled for next week.

[Diane Felix]

WOW! Thank you for sharing, lessons learned! 

[Don Miller]

I currently see a "Stop work order" on the permit on the city website.

"Erosion control" has failed city inspection 3 times this month.  Another inspection is scheduled on Monday.

[John Burtle]

wow! 

Congrats for the new build. Over two years would have me so nervous. 

I am getting ready to start my first spec home build. As you know it can be nerve wrecking. 

I'm looking forward to seeing the progress and I hope your build gets done soon. 

[Don Miller]

Quote from @John Burtle:

wow! 

Congrats for the new build. Over two years would have me so nervous. 

I am getting ready to start my first spec home build. As you know it can be nerve wrecking. 

I'm looking forward to seeing the progress and I hope your build gets done soon. 

 Thanks John.  I am ready for the next steps.  Good luck on yours!

[Don Miller]

Quote from @Don Miller:

I currently see a "Stop work order" on the permit on the city website.

"Erosion control" has failed city inspection 3 times this month.  Another inspection is scheduled on Monday.

 Erosion control has passed, and the permit is displaying "issued" status again, so that is resolved.

On the lending side, I have signed for another extension.  The lender has requested a 10% pay down on drawn funds (towards principal) at the time of extension. (this is my second 6 months extension)

[Don Miller]

Doors, windows, and insulation installed.  Dry wall in progress.  Finishes were selected a couple weeks ago.

[Don Miller]

Drywall in.  Well was also recently completed

[Jay Hinrichs]

Quote from @Don Miller:

Drywall in.  Well was also recently completed

2 years to get to this point ?  at least its moving along finally. 

[Don Miller]

Quote from @Jay Hinrichs:

Quote from @Don Miller:

Drywall in.  Well was also recently completed

2 years to get to this point ?  at least its moving along finally. 

 2 years and 3 months after signing contract.
1 year and 8 months after permits were approved by the city.

I am glad things are moving, for sure.

[Jay Hinrichs]

Quote from @Don Miller:

Quote from @Jay Hinrichs:

Quote from @Don Miller:

Drywall in.  Well was also recently completed

2 years to get to this point ?  at least its moving along finally. 

 2 years and 3 months after signing contract.
1 year and 8 months after permits were approved by the city.

I am glad things are moving, for sure.

I built 4 homes in Ocala and while we got them done it was over 12 to 16 months.. FLA for all their progressive pro business  building permits and construction to me is not one of them.. I am sure it will all work out for you in the long run.. we sold ours and made a tiny profit on each but its better than a loss right ?

[Don Miller]

Quote from @Jay Hinrichs:

Quote from @Don Miller:

Quote from @Jay Hinrichs:

Quote from @Don Miller:

Drywall in.  Well was also recently completed

2 years to get to this point ?  at least its moving along finally. 

 2 years and 3 months after signing contract.
1 year and 8 months after permits were approved by the city.

I am glad things are moving, for sure.

I built 4 homes in Ocala and while we got them done it was over 12 to 16 months.. FLA for all their progressive pro business  building permits and construction to me is not one of them.. I am sure it will all work out for you in the long run.. we sold ours and made a tiny profit on each but its better than a loss right ?

 It has been a learning experience, for sure.  I will say, the city of Cape Coral's permitting was painfully backed up at the time, and then they shifted to a new system which caused other delays.  Still not 100% sure what I will do at the end of this (we are a long, long way from the 3.5% rates and hot, hot sellers market of December 2021/Jan 2022 when I started looking into this).  I am hoping a small profit is still on the table, but time will tell.

[Eric James]

This is why I build outside city limits. In TX. 3 months from the time I purchase the land until they (I build small apartment buildings) are ready to be rented.

[Don Miller]

Quote from @Eric James:

This is why I build outside city limits. In TX. 3 months from the time I purchase the land until they (I build small apartment buildings) are ready to be rented.

 Wow!  I can't even imagine. 

I will also say, I expected over a year and a half going into this, based on my information and research at the time, knowing about permitting and material delays in the area.  The Cat 5 hurricane direct hit (a week after closing on my loan) probably didn't help either.

[Jay Hinrichs]

Quote from @Eric James:

This is why I build outside city limits. In TX. 3 months from the time I purchase the land until they (I build small apartment buildings) are ready to be rented.

3 months soup to nuts.. is astonishing wow. !!!  

[Eric James]

Quote from @Jay Hinrichs:

Quote from @Eric James:

This is why I build outside city limits. In TX. 3 months from the time I purchase the land until they (I build small apartment buildings) are ready to be rented.

3 months soup to nuts.. is astonishing wow. !!!  

 I hired my own crew and work with them full time. 3 months is for a 5 apartment building. The bottleneck for me is getting my cash out refinance after each building is completed.

[Ruchit Patel]

Great to see some progress finally! 

Did they tell you what is their estimated completion date and what was the price of your contract again? Do you also remember appraisal value?

[Kristi Kandel]

Quote from @Don Miller:

We took a trip to Cape Coral last week.
The area seems to be getting back to routine.  There are still a ton of roofs with blue tarps needing repair/replacement and some debris sitting curbside.  
Otherwise, we thoroughly enjoyed the area.  In driving past our property, we saw that a bunch of fill dirt was brought in for elevation/grading.

We also did a visit to Pine Island which has a lot of areas of worse damage.  Driving through Matlacha to get to Pine Island was particularly tough to see.  The area truly looks devastated, yet you can still see the charm that was there and will be back again.  There were people out and about smiling and offering free food to other residents.

Through the ups and downs, we continue to believe in the project and the area.

@Don Miller I live in fort myers beach. I thought I saw my roof on CNN so I biked in 3 days after the hurricane to find out if I still had a house. Thankfully I did.  

When I was reading your updates I was thinking how your permit timing was lining up vs the upcoming disaster. 

I’m a big fan of the area in the long run, and the SWFL communities have proven their resiliency the past 1.5 years and will continue to do so. 

While we don’t have state income tax here we do have the hurricane tax that comes with high insurance premiums and little real insurance benefits/help when it’s needed. As long as you’re building with future hurricanes (wind and flood) in mind you can ensure that you’re prepared for future storms. 

 I took that approach with everything I rebuilt at my property in FMB and there is a peace of mind from knowing exactly how to handle the next hurricane. The unknown is always the worst and now knowing what to anticipate from all sides (fema, insurance, SBA, damage, cleanup, repairs and rebuilding, etc.) makes every future storm a little more tolerable.

Part of it just comes down to the price we are willing to pay to live in such an amazing area. Beyond the actual dollars. 

I do believe that our area will all bounce back much stronger than before and what would have taken at least the islands another 30-50 years to redevelop is now reduced down to likely a 7-15 year rebuilding period. 

The only thing constant in life is change AND ultimately the only thing we control in life is our Response to what happens. 

[Don Miller]

Quote from @Ruchit Patel:

Great to see some progress finally! 

Did they tell you what is their estimated completion date and what was the price of your contract again? Do you also remember appraisal value?

 More recently, they estimated completion, June 1.  However historically (last September) they had estimated December of 2023, so we will see.

The pre construction appraisal was in the low 400s.  Recently I've seen a couple of these sell for 360k to 385k.

land purchase was about 40k.  Contract price was about 246k.  I've had a change order for 14k and anticipate another may come when the canal line is cleared. 

one of the biggest things has been holding costs with my particular loan product, plus multiple extensions with multiple extension fees

[Don Miller]

Quote from @Kristi Kandel:

Quote from @Don Miller:

We took a trip to Cape Coral last week.
The area seems to be getting back to routine.  There are still a ton of roofs with blue tarps needing repair/replacement and some debris sitting curbside.  
Otherwise, we thoroughly enjoyed the area.  In driving past our property, we saw that a bunch of fill dirt was brought in for elevation/grading.

We also did a visit to Pine Island which has a lot of areas of worse damage.  Driving through Matlacha to get to Pine Island was particularly tough to see.  The area truly looks devastated, yet you can still see the charm that was there and will be back again.  There were people out and about smiling and offering free food to other residents.

Through the ups and downs, we continue to believe in the project and the area.

@Don Miller I live in fort myers beach. I thought I saw my roof on CNN so I biked in 3 days after the hurricane to find out if I still had a house. Thankfully I did.  

When I was reading your updates I was thinking how your permit timing was lining up vs the upcoming disaster. 

I’m a big fan of the area in the long run, and the SWFL communities have proven their resiliency the past 1.5 years and will continue to do so. 

While we don’t have state income tax here we do have the hurricane tax that comes with high insurance premiums and little real insurance benefits/help when it’s needed. As long as you’re building with future hurricanes (wind and flood) in mind you can ensure that you’re prepared for future storms. 

 I took that approach with everything I rebuilt at my property in FMB and there is a peace of mind from knowing exactly how to handle the next hurricane. The unknown is always the worst and now knowing what to anticipate from all sides (fema, insurance, SBA, damage, cleanup, repairs and rebuilding, etc.) makes every future storm a little more tolerable.

Part of it just comes down to the price we are willing to pay to live in such an amazing area. Beyond the actual dollars. 

I do believe that our area will all bounce back much stronger than before and what would have taken at least the islands another 30-50 years to redevelop is now reduced down to likely a 7-15 year rebuilding period. 

The only thing constant in life is change AND ultimately the only thing we control in life is our Response to what happens. 

 What you all went through on the islands was unbelievable.  Ive been impressed with the response, resiliency, and rebuild down there.  

[Kristi Kandel]

Quote from @Don Miller:

Quote from @Kristi Kandel:

Quote from @Don Miller:

We took a trip to Cape Coral last week.
The area seems to be getting back to routine.  There are still a ton of roofs with blue tarps needing repair/replacement and some debris sitting curbside.  
Otherwise, we thoroughly enjoyed the area.  In driving past our property, we saw that a bunch of fill dirt was brought in for elevation/grading.

We also did a visit to Pine Island which has a lot of areas of worse damage.  Driving through Matlacha to get to Pine Island was particularly tough to see.  The area truly looks devastated, yet you can still see the charm that was there and will be back again.  There were people out and about smiling and offering free food to other residents.

Through the ups and downs, we continue to believe in the project and the area.

@Don Miller I live in fort myers beach. I thought I saw my roof on CNN so I biked in 3 days after the hurricane to find out if I still had a house. Thankfully I did.  

When I was reading your updates I was thinking how your permit timing was lining up vs the upcoming disaster. 

I’m a big fan of the area in the long run, and the SWFL communities have proven their resiliency the past 1.5 years and will continue to do so. 

While we don’t have state income tax here we do have the hurricane tax that comes with high insurance premiums and little real insurance benefits/help when it’s needed. As long as you’re building with future hurricanes (wind and flood) in mind you can ensure that you’re prepared for future storms. 

 I took that approach with everything I rebuilt at my property in FMB and there is a peace of mind from knowing exactly how to handle the next hurricane. The unknown is always the worst and now knowing what to anticipate from all sides (fema, insurance, SBA, damage, cleanup, repairs and rebuilding, etc.) makes every future storm a little more tolerable.

Part of it just comes down to the price we are willing to pay to live in such an amazing area. Beyond the actual dollars. 

I do believe that our area will all bounce back much stronger than before and what would have taken at least the islands another 30-50 years to redevelop is now reduced down to likely a 7-15 year rebuilding period. 

The only thing constant in life is change AND ultimately the only thing we control in life is our Response to what happens. 

 What you all went through on the islands was unbelievable.  Ive been impressed with the response, resiliency, and rebuild down there.  

 @Don Miller Likewise! I think part of what keeps everyone pushing forward is see everyone else continue to roll up their sleeves and put the work in. Just like all aspects of life :) 

If you come across anyone needing help I created this website of free resources to share. A lot applies to FMB BUT it also applies to the surrounding areas. https://restorefmb.com/

[Ruchit Patel]

Quote from @Don Miller:

Quote from @Ruchit Patel:

Great to see some progress finally! 

Did they tell you what is their estimated completion date and what was the price of your contract again? Do you also remember appraisal value?

 More recently, they estimated completion, June 1.  However historically (last September) they had estimated December of 2023, so we will see.

The pre construction appraisal was in the low 400s.  Recently I've seen a couple of these sell for 360k to 385k.

land purchase was about 40k.  Contract price was about 246k.  I've had a change order for 14k and anticipate another may come when the canal line is cleared. 

one of the biggest things has been holding costs with my particular loan product, plus multiple extensions with multiple extension fees

 Thanks for sharing. Every penny draining your pocket for the things out of your control, sucks! absolutely sucks. I feel you. 

May the luck with me with you :) 

[Peter Davis]

You're a trooper @Don Miller for hanging in there. It hasn't been an easy ride for lots of folks building in Cape Coral over the past several years, but one silver lining is the property values have nearly doubled since Covid, though the market has cooled recently. 

[Jeff Cody]

@Don Miller - I did a flip in Cape Coral around that same time and the permitting took 5 months as well.  I should have finished that flip in early Sept '22, but we basically just started around then, and then in late Sept '22 Hurricane Ian came through.  I needed a new roof and some more, but it could have been worse, many lost everything.  I lost money on that deal, but learned a ton.  Good luck finishing yours up!  Are you local?