First time with new construction: Cape Coral, FL

First time with new construction: Cape Coral, FL

Member since 2021 · 135 posts · 203 votes

Hey guys,
This post is mainly just to share where I'm at with this process, provide opportunities for myself to network with others in the area, and so I can periodically update.  I have connected with several members doing new construction or with boots on the ground in Cape Coral, so thanks to all of you that have discussed and answered questions from me so far.
Here's where I'm at:
-Connected with Rent to Retirement in November/December 2021 to discuss the area and opportunity.
-Closed on build contract January 2022 on a 4/3 (Build price itself is 246k).
-Closed on Freshwater canal Lot February 2022. (39k with closing costs).
-(All in construction+lot cost is 285k before loan and closing costs).
-Sent Deposit to builder February 2022. (13.5k) 
-Surveys, Site Plan, Septic Design approval initiated: February 2022
-Completed Survey/Design Package completed and sent to city of Cape Coral: June 2022
-As of August 2022, Permits are still under review by city.  Most submissions are under "Approved" status, but permit not formally issued.
-Lender currently has an estimated valuation of 410k for the property.


The hope is to buy and hold, LTR.  Current projected rent: ~$2450/mo

Needless to say, it has been a very interesting time to build.  We are excited, at times frustrated, and have a healthy level of anxiety, but all of those elements were expected from the start.

I'll try to keep this thread updated, as it has always been helpful for me to read others' experiences.

-Don

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Zach LemasterBusiness Member
Rental Property Investor · Denver, CO · Member since 2015 · 2k+ posts · 3k+ votes
4y

@Don M.

Thanks for sharing the details of your project!  Please keep us all updated with progress.  All normal emotions for going through the tedious construction process.  I'm right there with you.  Hopefully things continue to progress, and you come out on top with a huge equity position/high cash flow when it's all completed.  We are seeing about 50/50 split of people holding as rentals vs selling.  The avg equity position upon completion is about $150K with avg rent of $2,500 leasing in 3 weeks or less post CO.  Hopefully this gives you some light at the end of the tunnel.  Feel free to reach out at any point with any questions, or just to get a sense of how the market is doing overall.

See this reply in the discussion

206 Replies

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  • Investor · NJ · Member since 2022 · 155 posts · 224 votes
    3y
    Quote from @Rong Tan:
    Quote from @Bernard Joseph S.:

    I'm waiting on a seawall permit which was filed last month. Once that's done the fun should begin as my building permit has already been approved. I see most of you are with Delta. I'm contracted with Blacktip, so far so good. Anyone using Beattie or any of the other builders?

    Im w beattie. 

     Cool, your timeline is similar to mine. Let’s see who finishes first! 

  • Member since 2021 · 135 posts · 203 votes
    3y

    @Rong Tan @Bernard Joseph S.
    Good stuff.  Excited to hear how timelines pan out for both of you, as well!

  • Member since 2021 · 135 posts · 203 votes
    3y
    Quote from @Don M.:

    Per last update from team,
    Tentatively scheduled for completion of underground plumbing with inspection 3/10.
    Tentatively scheduled for slab completion week of 3/20.

     The following is not to express any level of happiness/unhappiness:

    At the time of this post, construction permit fees are not paid.  There is not an indication of underground plumbing inspection occurring in the energovweb portal.
    Alt seawall permit has expired and has the following hold in the portal: "Hold has been added by the IAA to ensure the expired permit cannot have any further work conducted until the expiration is extended."

  • Member since 2023 · 6 posts · 6 votes
    3y

    Looks like a super cool project! Thanks for sharing

  • Real Estate Agent · Cape Coral · Member since 2023 · 18 posts · 8 votes
    3y

    I love Cape Coral and am so glad you’re investing here. It’s worth it. Just curious on your thought process in deciding between LTR or building and selling.

  • Member since 2021 · 135 posts · 203 votes
    3y
    Quote from @Kirstin Moll:

    I love Cape Coral and am so glad you’re investing here. It’s worth it. Just curious on your thought process in deciding between LTR or building and selling.


     I hope to hold as a LTR and believe in the area long-term.
    Some decisions will have to be made when this whole thing finally comes to fruition, especially regarding interest rates, insurance, assessments, etc, but hope to hold!

  • Real Estate Agent · Cape Coral · Member since 2023 · 18 posts · 8 votes
    3y

    Good plan. The next 5 years are going to see huge growth. Lots of good developments coming to the area. So, of course, when the time is right for you jump on it...but sooner than later! Let me know if you need help scouting for more lots.

  • Member since 2021 · 135 posts · 203 votes
    3y
    Quote from @Don M.:

    Per last update from team,
    Tentatively scheduled for completion of underground plumbing with inspection 3/10.
    Tentatively scheduled for slab completion week of 3/20.


    Inquired about the above dates.  Per last update from team:
    Underground plumbing with inspection should be completed by the end of this week. (3/24).
    Tentatively scheduled for slab completion week of 4/10.

  • Member since 2021 · 135 posts · 203 votes
    3y

    @Bernard Joseph S.
    @Rong Tan

    Hey guys, either of you have any progress with your seawall permit/getting construction rolling yet?

  • Investor · NJ · Member since 2022 · 155 posts · 224 votes
    3y
    Quote from @Don M.:

    @Bernard Joseph S.
    @Rong Tan

    Hey guys, either of you have any progress with your seawall permit/getting construction rolling yet?


     Nothing yet. I checked in this week. My other builds in different counties move so much faster. Lee county is sloooooow 

  • Member since 2021 · 135 posts · 203 votes
    3y
    Quote from @Bernard Joseph S.:
    Quote from @Don M.:

    @Bernard Joseph S.
    @Rong Tan

    Hey guys, either of you have any progress with your seawall permit/getting construction rolling yet?


     Nothing yet. I checked in this week. My other builds in different counties move so much faster. Lee county is sloooooow 


     I hear ya.  I've heard Cape Coral in particular is slower than the rest of SWFL, but don't have anything to compare it to right now.  Fingers crossed for progress!

  • Developer · Panama City Beach, FL · Member since 2013 · 130 posts · 88 votes
    3y

    What's in it for R2R? Did you all buy your lots from them? It sounds like they just sent you to a lender and builder and maybe they got a piece from each? You shouldn't pay any draw until the work is done. Did you try a local CU or bank for a construction to permanent loan? I can't imagine they would cancel your loans like this other lender has unless they had cause. Building can be risky if you don't know what you are doing and who you are hiring.

  • Member since 2021 · 135 posts · 203 votes
    3y
    Quote from @Ryan M.:

    What's in it for R2R? Did you all buy your lots from them? It sounds like they just sent you to a lender and builder and maybe they got a piece from each? You shouldn't pay any draw until the work is done. Did you try a local CU or bank for a construction to permanent loan? I can't imagine they would cancel your loans like this other lender has unless they had cause. Building can be risky if you don't know what you are doing and who you are hiring.


     No, I didn't buy anything directly through them, but you are right regarding the connections; they did connect me with a loan broker, a land broker, the builder, etc.  

    New construction has definitely been a learning experience, particularly in Cape Coral with some of the permitting timelines, material shortages, and a historical hurricane in the midst of the process.

  • Member since 2021 · 135 posts · 203 votes
    3y

    Underground plumbing installed.  Per team's update, slab still tentative for next week.

  • Atlanta, GA · Member since 2018 · 11 posts · 3 votes
    3y

    Thanks @Don M. for all this thread. I am on the same boat, slab has not even started and need to find a new lender :S Are you in the area or how do you get pictures? Builder does not send much. I guess at this point you are continuing with Delta until all is done right? thanks!

  • Member since 2021 · 135 posts · 203 votes
    3y

    @Eliecer Trillos I am not in the area, although I have visited during the process.  The photos come from the builder with a list of updates.  I find their updates with photos helpful; I generally request an update every few weeks, and as progress is being made, they attach the photos.
    Yes, I am continuing the project and glad to see the recent progress.  Good luck!

  • Member since 2021 · 135 posts · 203 votes
    3y

    Delayed updates on my end.
    Per city portal, underground plumbing passed inspection 4/18, mono slab had a partial pass 4/24 and a full pass 4/26.  Thankful for some progress!

  • Real Estate Agent · Cape Coral · Member since 2023 · 18 posts · 8 votes
    3y
    Quote from @Eliecer Trillos:

    Thanks @Don M. for all this thread. I am on the same boat, slab has not even started and need to find a new lender :S Are you in the area or how do you get pictures? Builder does not send much. I guess at this point you are continuing with Delta until all is done right? thanks!


     I love working with Jamie Castagna from Mortgage One here in Cape Coral. She's great! If you need help getting pics, I'd love to see if I can't help out and get pics for you. I'm a realtor and always out and about. Send me a DM and lmk. 

  • Member since 2021 · 135 posts · 203 votes
    3y

    Through underground plumbing and slab. (Photos from third party inspector)  Next comes block.

  • Member since 2022 · 1 post · 0 votes
    3y
    Quote from @Rong Tan:
    Quote from @Bernard Joseph S.:

    I'm waiting on a seawall permit which was filed last month. Once that's done the fun should begin as my building permit has already been approved. I see most of you are with Delta. I'm contracted with Blacktip, so far so good. Anyone using Beattie or any of the other builders?

    Im w beattie. 

    Rong, how has your experience been? We just got an escalation this week from Beattie (been in permitting since…late 2022) and timelines seems to be pushed out a fair bit so we are actually considering moving to Blacktip.

  • Carlos JulioPro Member
    Rental Property Investor · Cape coral · Member since 2020 · 55 posts · 30 votes
    3y
    Quote from @Evan Burgess:
    Quote from @Rong Tan:
    Quote from @Bernard Joseph S.:

    I'm waiting on a seawall permit which was filed last month. Once that's done the fun should begin as my building permit has already been approved. I see most of you are with Delta. I'm contracted with Blacktip, so far so good. Anyone using Beattie or any of the other builders?

    Im w beattie. 

    Rong, how has your experience been? We just got an escalation this week from Beattie (been in permitting since…late 2022) and timelines seems to be pushed out a fair bit so we are actually considering moving to Blacktip.

    Hey guys I'm investor in the cape area , yeah permits it's a thing here in cape , I haven't done new builds like that but hear you have to go through and once it's done well you'll have your benefits. DM if you want me send you pics of your properties I know how that feels . 
  • Investor · Austin, TX · Member since 2021 · 83 posts · 80 votes
    3y
    Quote from @Carlos Julio:
    Quote from @Evan Burgess:
    Quote from @Rong Tan:
    Quote from @Bernard Joseph S.:

    I'm waiting on a seawall permit which was filed last month. Once that's done the fun should begin as my building permit has already been approved. I see most of you are with Delta. I'm contracted with Blacktip, so far so good. Anyone using Beattie or any of the other builders?

    Im w beattie. 

    Rong, how has your experience been? We just got an escalation this week from Beattie (been in permitting since…late 2022) and timelines seems to be pushed out a fair bit so we are actually considering moving to Blacktip.

    Hey guys I'm investor in the cape area , yeah permits it's a thing here in cape , I haven't done new builds like that but hear you have to go through and once it's done well you'll have your benefits. DM if you want me send you pics of your properties I know how that feels . 

    Carlos - what are your thoughts on rental growth and appreciation in Cape Coral. Looks like appreciation has stagnated in the last one year but at least the prices are not going down unlike markets such as Austin or Phoenix. Also, I see a lot of rental listings on Zillow that are decreasing their ask price. Has the inflow of new families to Cape Coral slowed down putting pressure on rental growth and appreciation? Thanks 

  • Carlos JulioPro Member
    Rental Property Investor · Cape coral · Member since 2020 · 55 posts · 30 votes
    3y
    Quote from @Pretty Khare:
    Quote from @Carlos Julio:
    Quote from @Evan Burgess:
    Quote from @Rong Tan:
    Quote from @Bernard Joseph S.:

    I'm waiting on a seawall permit which was filed last month. Once that's done the fun should begin as my building permit has already been approved. I see most of you are with Delta. I'm contracted with Blacktip, so far so good. Anyone using Beattie or any of the other builders?

    Im w beattie. 

    Rong, how has your experience been? We just got an escalation this week from Beattie (been in permitting since…late 2022) and timelines seems to be pushed out a fair bit so we are actually considering moving to Blacktip.

    Hey guys I'm investor in the cape area , yeah permits it's a thing here in cape , I haven't done new builds like that but hear you have to go through and once it's done well you'll have your benefits. DM if you want me send you pics of your properties I know how that feels . 

    Carlos - what are your thoughts on rental growth and appreciation in Cape Coral. Looks like appreciation has stagnated in the last one year but at least the prices are not going down unlike markets such as Austin or Phoenix. Also, I see a lot of rental listings on Zillow that are decreasing their ask price. Has the inflow of new families to Cape Coral slowed down putting pressure on rental growth and appreciation? Thanks 


     By living in the mistakes market this last 2.5 yrs I can tell:

    - appreciation has stagnated as expected , after appreciation of 25-40% , is expected a slow down with appreciation in the 3-8% at least in zones and criteria I check monthly 

    - rental listing started to show up as expected as well. We came heros a market that rentals were very few to now a decent balance, I'm currently renting one , let's see how many days do I take to rent as reference . Avg Dom should be less than 20 days

    - if you look at development in certain areas of cape , there are a good a mount of multi-family coming in . This will influence the supply in the area but in some specific niche or criteria, that's why is important to review constantly the area 

    -inflow of new families are not slowing down. As other markets out/in Florida are increasing in price , people are looking to relocate to sw market.  Foe example I constantly talk to people from miami area and it's attractive for them due to price diff. Hope it helps DM if you need more insight of the area

  • Member since 2021 · 135 posts · 203 votes
    3y

    Block on site, scheduled to go vertical next week.

    Updated timeline:
    Lot purchase Feb 2022
    Permit approvals August and Sept 2022
    Hurricane Ian Sept 2022
    Lot cleared Nov 2022
    Underground plumbing and slab April 2023
    Block delivery July 2023

  • Investor · NJ · Member since 2022 · 155 posts · 224 votes
    3y
    Quote from @Don M.:

    Block on site, scheduled to go vertical next week.

    Updated timeline:
    Lot purchase Feb 2022
    Permit approvals August and Sept 2022
    Hurricane Ian Sept 2022
    Lot cleared Nov 2022
    Underground plumbing and slab April 2023
    Block delivery July 2023

    Thanks for the updates Don! 
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