Looking to Build a Duplex for our first rental property, any tips/advice helps!

Cape Coral, Florida
Starting Out
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Looking to Build a Duplex for our first rental property, any tips/advice helps!

Marc Gabriel Pangilinan
New to Real Estate · 33914 · Member since 2023 · 3 posts · 3 votes

Hello,

My Wife and I are Military and we are thinking of getting out soon (2025).  

We are moving from Utah to Florida where her family is, specifically Cape Coral, Florida. We are looking into the market for a duplex to "house-

hack" for our first property but the prices for a Multi-Family in the area is really high for a not so nice duplex.

At the moment, we are looking into building a duplex and we are wanting to use my VA Loan (Construction) if possible. 

What we are currently doing:

• SAVING, when we get out we will have $50K+ in savings for any cost that follows.

• RESEARCHING, Looking into Land to build on and what to look for, and the processes.

What more can we do?

Should we go for construction in this specific area?  We have been looking into it and this is a very nice area that has seen substantial amount of appreciation.

Would it be cheaper to build? In this area and at this moment?



Any advice would be greatly appreciated! Thank you:)

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Jason DemersPro Member
Contractor · Fort Myers, FL · Member since 2023 · 6 posts · 5 votes
3y

@Marc Gabriel Pangilinan Builder here in SWFL and build a lot of duplexes in Lehigh Acres and in Punta Gorda. The problem with multifamily in Cape Coral and Fort Myers is finding the land with the correct zoning, if you do find it will be costly. Right now I am between $155-$170 per SQFT for duplexes depending on level of finish, this does not include land, permit, impact fees or fill dirt. Duplex @ 2400 sqft 6Bed, 4Bath, 2-Single car garage. (3/2/1 - 1200sqft, per side) 

EX. $385k Build, $18k Permit/Impact fee, $25k Land, $10k-30k Fill Depending on Elevation of lot.

All in you will be somewhere around $450k, this example is based on Lehigh Acres. We just finished one exactly as described above for an investor and it sold for $545k, So there is equity but the build time is 10-12 months after permit issuance. In Fort Myers they allow ADU's to be built on single family lots so you may want to consider that for house hacking. There are some stipulations and affidavits to sign but can easily be done.

Hope this helps! Any questions reach out, happy to help

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  • Carl Davis
    Lender · AZ · Member since 2022 · 148 posts · 95 votes
    3y

    Hey Marc! I’m in Utah too and just separated after my skill bridge about 10 days ago. 

    I’ve used my va loan twice now but haven’t done a va one time close construction loan. From what I have heard from other lenders these deals can be a pain to put together. I would talk to a local mortgage broker there and see how difficult it actually is to piece the deal together.

    If it were me I would go after pre-existing homes but doesn’t look like there is a huge supply of multi family out there.

    Maybe if there are single family homes with ADU's out there I would target those? That's what seems to work well here.

    Either way best of luck and thanks for your service as well.




    2Reply
  • Marc Gabriel Pangilinan
    OP
    New to Real Estate · 33914 · Member since 2023 · 3 posts · 3 votes
    3y

    Hey Carl, thanks for replying!

    There definitely isn't much of a supply and the ones that is out there is upwards of $500-$650K for a 6 Bed 4 Bath Duplex. We figured the best way for us to get our hands in RE is to Build a Duplex, since we are a growing family and do not want to have a room mate in a single family home. Also, though it takes time, with the current market we feel that the best value for our money is to build instead of buying a built up property and potentially paying the same amount or more.

    We are currently talking to a lender we found on Vetted VA, who is willing to help us with the process. But still figuring that part out.

    Again, We appreciate the advice we take anything we receive. Thank you for your service too!

    0Reply
  • Byron Paille
    Member since 2023 · 21 posts · 21 votes
    3y

    Built in TX a few years ago. My state or most states to my knowledge do not have construction loans using VA. You have to get a construction loan then Convert it to VA loan post build.

    1Reply
  • Logan M.
    Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes
    3y

    Not to discourage you from building but 9/10 times you can find existing that need some work. That could make the VA loan part difficult but construction is a ton of work.

    I am building a ten-plex right now in Utah County and if I didn't get such great seller financing terms on the building that used to be there it would not have been worth it.

    1Reply
  • Stetson MillerBusiness Member
    Real Estate Broker · Fort Myers, FL · Member since 2019 · 576 posts · 423 votes
    3y

    Hi @Marc Gabriel Pangilinan,

    If you're needing a reference for a local mortgage broker that specializes in VA loans to get some insight on how that process works here, I would be happy to provide that

    Regarding the investment as a whole, are you looking only for new construction properties? From the prices you listed that's what I'm assuming, but if not, you can certainly find existing construction well below that range. In addition to that, there's other local markets that offer very similar new construction duplexes in the low $500's, so that could be another option to consider as well

    [email protected]850-259-2910
    Stetson Miller Realtor545 Reviews
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    1Reply
  • Marc Gabriel Pangilinan
    OP
    New to Real Estate · 33914 · Member since 2023 · 3 posts · 3 votes
    3y

    Hey @Logan M. & @Stetson Miller

    We are currently looking into pre-existing homes and as of now we have not seen any that are actually in the range we are looking to pay. The work is not really what we are worried about since we will have time to work on it. Mainly, we are seeking some answers if it would be cheaper to build in the market of Cape Coral - Fort Myers than it is to buy a pre-existing Multi-family property in the same areas. 

    What are the processes for determining the cost to build? 

    We are currently talking to a lender about using VA Construction Loan.

    Thanks so much for the info!

    1Reply
  • Logan M.
    Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes
    3y

    Off-market multifamily is ideal

    2Reply
  • Stetson MillerBusiness Member
    Real Estate Broker · Fort Myers, FL · Member since 2019 · 576 posts · 423 votes
    3y

    @Marc Gabriel Pangilinan It's definitely not cheaper to build new construction, typically not even close after accounting for land purchase, permitting and startup costs, etc. I would recommend reaching out to local builders in the area with floorplans that you like and proceeding from there. One great resource for this would be Rent To Retirement, as they have all of this information available on their website and can easily answer any additional questions you may have. Let me know if you're interested in that and I would be happy to make an introduction for you!

    [email protected]850-259-2910
    Stetson Miller Realtor545 Reviews
    View Page
    2Reply
  • Jason DemersPro Member
    Contractor · Fort Myers, FL · Member since 2023 · 6 posts · 5 votes
    3y

    @Marc Gabriel Pangilinan Builder here in SWFL and build a lot of duplexes in Lehigh Acres and in Punta Gorda. The problem with multifamily in Cape Coral and Fort Myers is finding the land with the correct zoning, if you do find it will be costly. Right now I am between $155-$170 per SQFT for duplexes depending on level of finish, this does not include land, permit, impact fees or fill dirt. Duplex @ 2400 sqft 6Bed, 4Bath, 2-Single car garage. (3/2/1 - 1200sqft, per side) 

    EX. $385k Build, $18k Permit/Impact fee, $25k Land, $10k-30k Fill Depending on Elevation of lot.

    All in you will be somewhere around $450k, this example is based on Lehigh Acres. We just finished one exactly as described above for an investor and it sold for $545k, So there is equity but the build time is 10-12 months after permit issuance. In Fort Myers they allow ADU's to be built on single family lots so you may want to consider that for house hacking. There are some stipulations and affidavits to sign but can easily be done.

    Hope this helps! Any questions reach out, happy to help

    3Reply
  • Peter Davis
    Real Estate Broker · Cape Coral, FL · Member since 2014 · 382 posts · 300 votes
    3y

    @Marc Gabriel Pangilinan

    Not to "poop in your punch bowl" as my dearly-departed Dad would say, but building in Cape Coral is a challenge right now, and has been for the last few years since Covid. Materials supplies shortages, labor shortages, and permitting delays are the biggest factors, not to mention the mess caused by Hurricane Ian. 

    Just this week I spoke to one builder who said they can't get the septic systems they typically use which has caused major delays in closing out builds and getting the coveted Certificates of Occupancy (CO's). The recent passage of Senate Bill 1718 by the governor sent undocumented laborers running for cover. I recently visited 18 build sites in North Cape Coral on behalf of the owners and only two of the sites had workers present. Also, a colleague of mine and his wife finally completed construction on their modest gulf-access home in the Cape with a reputable local builder; it took 32 months! 

    There might be duplex builders out there that are more on the ball than others and can deliver quality faster, but I suggest continuing to save your money and look for existing properties, preferably the newer the better to save on insurance costs. For example, there are 36 duplexes in Cape Coral currently listed for sale on the MLS, about half are newer construction, and new listings are continuing to come to market. You have some time before you leave the military in 2025 to keep an eye out for opportunities as the real estate market continues to soften into next year.

    My opinion. Good luck and thank you to you and your wife for your service!

    1Reply
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