What do you think about cape coral florida?

Question

Hello all,

I have seen a lot of tick tocks and stuff of social media about Cape Coral Florida being a good investment. I donot know anything about Cape coral except there are crocodiles and tornados and its humid. Do you think its a good investment. The numbers seem to make sense, but I am not sure about the area and long term.

Trevor Fleck · Answer

@Danushka Abeyasekera Rent to Retirement can connect you with their contractors. I’d reach out to them to schedule a call.

Gopichand N. · Answer

@Patrick Bavaro - I see your mention about CapeCoral in a lot of threads, do you have any referrals for past purchases with you and documentation to support the numbers ?I'm hearing about delays in new builds because of supply materials have been backed up,what do you have to say on that?

Trevor Fleck · Answer

@Danushka Abeyasekera and @Gopichand N. I currently have 7 builds in various stages of development in Cape Coral right now. The first will be completed next month. It's 1,600sqft 4/2 on a freshwater canal lot that will be listed for $2,500. When I purchased it (all in) for $238k almost a year ago, anticipated rent was $1,850.

To your questions about delays in new builds, these things are true. My first build started in April and was originally anticipated to be finished in October. Cape Coral has the 2nd most new builds in the nation/capita right now and their inspection and permitting services are overwhelmed. It's a fantastic opportunity, but patience is key. In addition to the permitting department delays, there are the same material delays and resource delays due to COVID that you see anywhere else in the country right now. On the back end, I currently have a finished house on the interior that has been waiting 45 days for the State Dept of Health to conduct the septic inspection so we can finish. Is it frustrating? Sure! Am I going to make a lot of money making it worth it? You bet!

Patrick Bavaro · Answer

@Danushka Abeyasekera I think it’s a great investment market! Currently I’m building a 4/3 new build in Cape Coral. Total all in cost is $265k. Rents right now are at about $2300 and climbing. Currently post construction appraisals are coming back at $360k-$410k depending on location of the property. So, I find myself in a position to sell and make a quick $100k return potentially, or keep It and rent for the cash flow and future appreciation growth. Not a bad position to be in!   I’d be happy to connect to share experiences. Good luck!

Patrick Bavaro · Answer

@Gopichand N. I mention It because I get the opportunity to network with others who are investing in the area. You’d be amazed at how many people I’ve spoken to that have provided me with opportunity for the future! Anyways, there are definitely delays. The biggest is in regards to permitting, but there’s not much to do about that. The city is just slammed with new permit applications and only has a handful of city planners to review the apps. Once you submit to permitting you’re looking at about 90-120 days before it’s approved. As far as building goes, I haven’t experienced delays yet or heard of anyone that has, but it’s certainly possible. I think the benefit to this route with a turnkey provider is that the builder is working off volume and has a constant flow of materials on order months in advance. Hope this helps!

Danushka Abeyasekera · Answer

@Patrick I am interested

Sastry Srini · Answer

I have worked with Norada for buying the SFR and they can connect you to TK providers in that area.

Danushka Abeyasekera · Answer

@Trevor Fleck Do you have any contractors that I can speak to

Stetson Miller · Answer

@Danushka Abeyasekera You're definitely not wrong regarding the gators, tornados, or humidity! With that being said, Cape Coral has a rapidly growing short term rental industry, and the city is looking to continue in promoting that growth. As you stated, numbers for STR's often work out very well with the right property, area, and layout that will retain high demand throughout all seasons

In addition to that, Cape Coral in 2021 saw appreciation gains as high as 25-30% which is expected to continue over the next 2-5 years, averaging roughly 12-18% annually over that timeframe

What do you think about cape coral florida?

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