Hi All! "Longtime listener first time caller here." I have been investing in RE since 2012 but have been exclusively in my hometown market. I'm looking to branch out and have been spending a lot of time in SW Florida and am interested in starting to invest there. Im looking to better understand the SFH rental market. I know this is a broad question but if you have a rental property anywhere from Marco to Fort Myers I would love the hear specifics.
What was the purchase price?
When did you buy?
Bed/Bath/Sqft?
Rent?
Your preferred location and why?
Thanks in advance for indulging me and sharing some info. I will be down there in a week and am planning on attending the local REI meet up.
Real Estate Broker · Cape Coral, FL · Member since 2014 · 382 posts · 300 votes
7y
Hi Josh,
I don't own any rentals here in SW Florida but I've helped a lot of investors buy them. I own apartments in Los Angeles, where I lived prior to moving here in 2012. My plan is to buy and hold here too. The fundamentals are strong, both annual and seasonal. I'm listing an older gulf access home in SE Cape Coral and it's booked solid with seasonal renters and its pretty dated, clean but older (actually my age, 49 :). If you have an idea of what you're looking for I'm happy to send you listings and pull rental comps. Keep in mind condos are challenging with limits on frequency and duration of tenancies, HOA approval of tenants and often the condo fees kill cash flow.
I'm also planning to attend the meet up. Look forward to meeting you then!
Real Estate Broker · Cape Coral, FL · Member since 2014 · 382 posts · 300 votes
7y
Hi Josh,
I don't own any rentals here in SW Florida but I've helped a lot of investors buy them. I own apartments in Los Angeles, where I lived prior to moving here in 2012. My plan is to buy and hold here too. The fundamentals are strong, both annual and seasonal. I'm listing an older gulf access home in SE Cape Coral and it's booked solid with seasonal renters and its pretty dated, clean but older (actually my age, 49 :). If you have an idea of what you're looking for I'm happy to send you listings and pull rental comps. Keep in mind condos are challenging with limits on frequency and duration of tenancies, HOA approval of tenants and often the condo fees kill cash flow.
I'm also planning to attend the meet up. Look forward to meeting you then!
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
7y
IMO the rental market is slowing down as far as escalating rents. I am also seeing some properties being marketed that appear to be lower priced (I expect to see some investors jump at these) but IMO it is too early to be buying unless you can get a deal substantially under market.
Is the slowing rental market indicative of a larger real estate slow down in Sw Florida or do you think SFH rentals are just over bought? I've been trying to get a feel for the market and would love to know current inventory levels compared to this time last year and average days on market per property. Trying to time the market is tough but a prudent investor should have an outlook of the future.
Real Estate Broker · Fort Myers, FL · Member since 2008 · 1k+ posts · 323 votes
7y
Rents and starting to flatten and in some cases go down. Many of the vacancies are from tenants buying a home. It really is cheaper to own than rent right now (realtors have been selling that for years LOL, sometimes it is true). It depends on the submarket.
Rental Property Investor · Member since 2018 · 18 posts · 10 votes
7y
Apologies for resurrecting an old thread. Five months after the original post, do you see housing prices continuing to soften or have things started to stabilize now? Or do you think better times for investors in the Cape still yet to come?