I just joined BP recently and am interested into buying a investment property in Cape Coral, FL. Currently I work with an agent who finds a 3b/2b property which is about $275,000 in zip code NW (zip code: 33993). I am a out of state investor and not sure whether this new construction is a good investment opportunity or not. My agent says it may be rented for $1,700.
Any tips or suggestions for a new investor of Cape Coral area are appreciated!
Message me if be happy to help.
I live local willing to help anyway I can.
New construction homes in that zip code of NW Cape Coral have really shot up even in the last several months. You’re spot on, they’re now selling in the $275K range and at $1,700/month rent the numbers are not good (cash on cash, cap rate, cash flow). That ship has sailed in my opinion. The only remaining play I see is if you’re looking for long term appreciation given all the projected growth for the area. You might look like a genius in 20 years.
@Peter Davis I really like your concise and honest response! I’ve ‘met’ some great people during my SWFL hunt in the past few months.
The NB seem like they are high quality so there is the buy and hold option. Another of my concerns is that sometime during that buy and hold period there WILL be assessments, right? My understanding is that will be from $15000-$25000 for city sewer and water. Also, interest rates for investors have definitely RISEN (and that’s not just an Easter quote). I’m not sure how long SWFL can sustain rising rents.
I decided on the following-I am UC for a duplex in SW CC. It’s older, established tenants, all assessments paid and has a brand new roof. I’m paying $253K (probably a bit too much) and right now it rents for $1000 per side.
Thanks Cj, I call 'em like I see 'em. And I like the "risen" line; that's punny! Yes, everything in Cape Coral north of Pine Island Road has either just had the city utilities (water, sewer, irrigation) come through or they will be coming through in the coming years/decades. These are massive projects so they don't happen quickly.
Good luck with your duplex!