Cape Coral vs Lehigh Acres, FL (Rental Investment Duplex)

Buying & Selling Real Estate
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Cape Coral vs Lehigh Acres, FL (Rental Investment Duplex)

Artur A.
Member since 2020 · 78 posts · 27 votes

Hi guys,

I'm thinking about buying property in Cape Coral vs Lehigh Acres. What is your opinion?

1) Most of the properties in Lehigh Acres seems to be C or B - I might have an issue with tenants (eviction, on-time payments, etc). Most of the schools have a bad rating. 

2) Cape Coral has better schools in general. Prices of 3 bedroom apartments in Lehigh Acres are similar to 2 bedrooms in Cape Coral (I guess Lehigh Acres has more opportunity for appreciation). Also, Cape Coral is close to the Gulf of Mexico - the price of insurance most likely be higher (hurricanes, flood).

Can I ask you to help me with calculations for rental properties ( rent numbers were taken from Rentometer). Is it too low or high?:

- insurance costs

- property management cost

- maintenance (for old houses - 1979 & 1990) & vacancy rate

Am I missing something?

1) Lehigh Acres, FL 33974

Price345000
Downpayment 20%69000
Principal17268
Interest 4.75%
Prop management (8%)2688
Insurance1800
Taxes (Lee county - 0.95%)3278
Maintenance (8%)2688
Vacancy (8%)2688
Rent Annual ( Rentometer)33600
Operating income:3190
Year1990
Schools2-5 (below avg - avg)
Neighborhood

2) Cape Coral, FL 33914

Price349900
Downpayment 20%69980
Principal17520
Interest 4.75%
Prop management (8%)2620.8
Insurance1800
Taxes (Lee county - 0.95%)3,324
Maintenance (8%)2620.8
Vacancy (8%)2620.8
Rent Annual ( Rentometer)32760
Operating income:2,254
Year1979
SchoolsGood
Neighborhood
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Peter Davis
Real Estate Broker · Cape Coral, FL · Member since 2014 · 382 posts · 300 votes
5y

@Artur A.

As a quick case study I recently listed two duplexes, one in Cape Coral and one in Lehigh Acres, both are under contract and closing soon. 

The Cape duplex is a 2/2 per side, no garages, built in 1979. Fair condition, newer roof, B-C neighborhood. Listed for $289K and sold for that, appraised at $290K. Rents are $1,000/side. Good tenants, one's been there for over 10 years.

The Lehigh duplex is a 3/2 per side, 1-car garages, built in 2006. Fair condition, original roof, C neighborhood. Listed for $289K and sold for that but we reduced the price to $280K due to the age of the roof and the buyer's difficulty insuring it (even though it was in good condition without leaks - that's a whole other conversation about insurers tightening standards as a result of roof replacement claims resulting from Hurricane Irma). Rents are $1100/side. Solid, qualified tenants.

I hope that helps paint the picture of differences between the two areas and duplex types. 

Best of luck to you!

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  • Matt Dombrowski
    Investor · Ft Myers, FL · Member since 2021 · 13 posts · 16 votes
    5y

    Rent is way too high. For a standard 3/2 in Cape Coral you can probably expect $1500-1750/mo and Lehigh Acres more like $1250-1500/mo

    0Reply
  • Stetson MillerBusiness Member
    Real Estate Broker · Fort Myers, FL · Member since 2019 · 576 posts · 423 votes
    5y

    Hi @Artur A.,

    I'm not seeing numbers in the post anymore, but feel free to PM me and I would be more than happy to review numbers and provide comparisons between the two cities. Both of these places have their own pros and cons, and many investors end up purchasing in one, but not the other, for very specific reasons

    [email protected]850-259-2910
    Stetson Miller Realtor545 Reviews
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    2Reply
  • JASON V.
    Rental Property Investor · Lee County FL · Member since 2021 · 19 posts · 12 votes
    5y

    I would assume at those prices you're looking at duplexes.(and per the title of your post) If so the rents are probably pretty close, or right on the mark depending on specific area and how nice it is. but not too far off. 

    If your prices are correct, I would suggest Cape Coral and believe you will get more bang for your buck.

    If you do go Lehigh, you'd probably be fine too. I have a couple out there that I have had decent luck with. Just spend the time on tenant screening and make sure you get good tenants. I find the older areas are popular in Lehigh right now and closer to everything. (plus they have sewer and water, and that can be a big expense when it comes through, or even maintaining your own well and septic adds to your costs) 

    1Reply
  • Peter Davis
    Real Estate Broker · Cape Coral, FL · Member since 2014 · 382 posts · 300 votes
    5y

    @Artur A.

    As a quick case study I recently listed two duplexes, one in Cape Coral and one in Lehigh Acres, both are under contract and closing soon. 

    The Cape duplex is a 2/2 per side, no garages, built in 1979. Fair condition, newer roof, B-C neighborhood. Listed for $289K and sold for that, appraised at $290K. Rents are $1,000/side. Good tenants, one's been there for over 10 years.

    The Lehigh duplex is a 3/2 per side, 1-car garages, built in 2006. Fair condition, original roof, C neighborhood. Listed for $289K and sold for that but we reduced the price to $280K due to the age of the roof and the buyer's difficulty insuring it (even though it was in good condition without leaks - that's a whole other conversation about insurers tightening standards as a result of roof replacement claims resulting from Hurricane Irma). Rents are $1100/side. Solid, qualified tenants.

    I hope that helps paint the picture of differences between the two areas and duplex types. 

    Best of luck to you!

    4Reply
  • Jordan Williamson
    Rental Property Investor · Cape Coral, FL · Member since 2012 · 427 posts · 187 votes
    5y

    Personally I like Cape Coral but stay away from Lehigh. It is kind of an archaic mindset because there are better and worse parts of Lehigh, but this mentality has kept me out of trouble and done well for me over the years.

    2Reply
  • Alvin Taveras
    Real Estate Broker · FL · Member since 2018 · 149 posts · 96 votes
    5y

    Both markets have plenty of options. Lehigh tends to look better on paper while Cape Coral seems like a more stable investment. The purchase price for a 2/2 in Cape Coral is a bit high. We currently have 3 in South Cape w/ assessments paid for under $300k. I also agree with @Matt Dombrowski that rents seemed a bit high. But this depends on upgrades and location. 

    If you are looking for New Construction Duplexes, then Lehigh, Port Charlotte, Englewood and Palm Coast are excellent markets for this. Your acquisition cost will be similar to what you listed while getting the higher rents you might be aiming for. 

    @Peter Davis is on the money with his case study. Both examples are ideal. With the Cape opportunity mention, the previous owner had rents way to low and as a buyer, if you find these opportunities, all you often have to do is raise rents. In Lehigh, you can find many gems that are just 15-20 years old with previous owners unwilling to pay for the repairs. These often have the same layout and rental rates as newer. Just may require some sprucing up. 

    Let me know if I can provide any further assistance. - Alvin

    2Reply
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