First time with new construction: Cape Coral, FL

Cape Coral, Florida
Land & New Construction
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First time with new construction: Cape Coral, FL

Don M.
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.

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  • Joe R.
    Investor · Cape Coral, FL · Member since 2017 · 39 posts · 35 votes
    2y

    Don Miller - Ian reeked havoc for sure. I bought most of the lots I'm building on now in the Spring of 2022.  I was going to permit in Oct/Nov 2022 and Ian rolled through, so I waited a bit.  Things are normalizing now.  

    1Reply
  • Peter Davis
    Real Estate Broker · Cape Coral, FL · Member since 2014 · 382 posts · 300 votes
    2y

    @Joe R.

    Good intel and good news on pricing for pools and trusses, thanks Joe. I was quoting pool prices for my clients several years ago at approximately $40K (basic package 12'X24' including screen enclosure and paver deck) and then they doubled and more after COVID. I'd love to hear what you're paying and who you're using for them if you wouldn't mind sharing, either here or PM. Thanks!

    1Reply
  • Neal Coppola
    Investor · Camas, WA · Member since 2020 · 29 posts · 29 votes
    2y
    Quote from @Joe R.:

    Cruising Right Along - Awaiting Sheathing Inspection.  


     Joe - That's awesome progress in that timeframe.  Would you mind sharing who your builder is?

    0Reply
  • Joe R.
    Investor · Cape Coral, FL · Member since 2017 · 39 posts · 35 votes
    2y

    @Peter Davis ... That same pool package is roughly $75-$80K now, with the same features.  Pool, pavers, screen and cage, gutters, and pool equipment.  Builders may get a better volume pricing.  

    2Reply
  • Peter Davis
    Real Estate Broker · Cape Coral, FL · Member since 2014 · 382 posts · 300 votes
    2y

    Thanks @Joe R. 

    That's good to hear. Really appreciate you sharing this info. It's always good to have another reasonably priced and reputable pool vendor in my arsenal to share with clients.

    Thanks again!

    2Reply
  • Don M.
    OP
    Member since 2021 · 135 posts · 203 votes
    2y

    Updated timeline:
    Build contract signed January 2022
    Lot purchase February 2022
    Permit approvals August 2022 (build) and Sept 2022 (alt. seawall)
    Hurricane Ian September 2022
    Lot cleared November 2022
    Underground plumbing and slab April 2023
    Block delivery July 2023
    Tie Beam inspection August 2023
    Roof Dried in November 2023
    HVAC, Plumbing, and electric rough inspections December 2023
    Just hit two year mark of contract January 2024.

    I closed on my loan once construction permits were approved, knowing permitting takes several months. 
    I have extended my loan (at a cost of 2% and an increased rate), once it hit maturity at the one year mark.  I was granted a 6 month extension, which will mature again April 1 2024.

    2Reply
  • Peter Davis
    Real Estate Broker · Cape Coral, FL · Member since 2014 · 382 posts · 300 votes
    2y

    Thanks for the update Don!

    1Reply
  • Joe R.
    Investor · Cape Coral, FL · Member since 2017 · 39 posts · 35 votes
    2y

    The Pool Shell Is In and Concreted.  Roof is dried in.  Windows/Doors coming next week.  All rough inspections are passed.  Drywall early February.  Seen a few Gators in the canal with the cold earlier this week.  

    2Reply
  • Don M.
    OP
    Member since 2021 · 135 posts · 203 votes
    2y

    Thanks @Joe R.  You are making great progress.  The pools are going to be great additions to these builds.

    On my end, at the time of my last update on December 22, I was told doors and windows were ordered, and once they are installed we can move forward with insulation.

    On January 16, I requested another update.  At the time of this post, I haven't gotten an update yet (I've been asked to only request an update once a month).  When I do get a response from the builder, I'll post any progress and if doors and windows have been installed.

    1Reply
  • Don M.
    OP
    Member since 2021 · 135 posts · 203 votes
    2y

    Received an update from builder today.  Stated that doors, windows, and sliders are scheduled for delivery 2/19.

    1Reply
  • Peter Davis
    Real Estate Broker · Cape Coral, FL · Member since 2014 · 382 posts · 300 votes
    2y

    Looking good @Joe R. I like the pool bench seating, nice touch. 

    1Reply
  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    2y

    2 years to build a house is crazy. I'd find a new builder and have late build penalties. are you building all cash? if so maybe it doesn't matter but most construction loans would have had to be refinanced twice by now 

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    1Reply
  • Don M.
    OP
    Member since 2021 · 135 posts · 203 votes
    2y

    The following is not to express any level of happiness or unhappiness with the build:

    Received change orders totaling $14,970 for 18 additional loads of fill dirt over allotted amount in contract (fill dirt arrived in December 2022), 7 loads of septic sand over allotted amount, and rock excavation at the septic site.

    0Reply
  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    2y
    Quote from @Don M.:

    The following is not to express any level of happiness or unhappiness with the build:

    Received change orders totaling $14,970 for 18 additional loads of fill dirt over allotted amount in contract (fill dirt arrived in December 2022), 7 loads of septic sand over allotted amount, and rock excavation at the septic site.


     make sure to ask for the tickets. if they are putting 6 yards of soil in a single axle truck you are getting ripped off. "load" of dirt is a little vague. make sure you have cubic yards measured with tickets or ask for them. 6 axle trucks can take 15-18 yards

    [email protected]786-494-6766
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    1Reply
  • Neal Coppola
    Investor · Camas, WA · Member since 2020 · 29 posts · 29 votes
    2y
    Quote from @Robert Ellis:

    2 years to build a house is crazy. I'd find a new builder and have late build penalties. are you building all cash? if so maybe it doesn't matter but most construction loans would have had to be refinanced twice by now 

    Robert -

    Cape Coral is definitely in a unique position when it comes to new builds. Don is definitely not alone in his journey as there a a number of people with similar timelines and situations.  I was heading down a similar path and fortunately I cancelled my contract and forfeited my deposit.  Given what many people have experienced, I'm fortunate that I did.  

    Thank you Don for continuing to share your experience........ We're rooting for you!! 
    0Reply
  • Don M.
    OP
    Member since 2021 · 135 posts · 203 votes
    2y

    Thanks @Neal Coppola
    I just try to share the facts/information as I best understand them, and of course hope it helps others on similar journeys.  I've tried to keep from posting any feelings on here.  I will say, I've learned a lot.
    Cape Coral in itself definitely had a unique couple years.  I will be excited for the finish line.

    0Reply
  • Rich WilkenPro Member
    Investor · Antioch, IL · Member since 2017 · 41 posts · 12 votes
    2y
    Quote from @Don M.:

    The following is not to express any level of happiness or unhappiness with the build:

    Received change orders totaling $14,970 for 18 additional loads of fill dirt over allotted amount in contract (fill dirt arrived in December 2022), 7 loads of septic sand over allotted amount, and rock excavation at the septic site.

    I deal with all of those issues on new builds. Nothing uncommon there. Can you give a cost breakdown?
    0Reply
  • Don M.
    OP
    Member since 2021 · 135 posts · 203 votes
    2y
    Quote from @Rich Wilken:
    Quote from @Don M.:

    The following is not to express any level of happiness or unhappiness with the build:

    Received change orders totaling $14,970 for 18 additional loads of fill dirt over allotted amount in contract (fill dirt arrived in December 2022), 7 loads of septic sand over allotted amount, and rock excavation at the septic site.

    I deal with all of those issues on new builds. Nothing uncommon there. Can you give a cost breakdown?

     For the recent change order-
    18 loads of dirt: $5310

    7 loads of sand for septic $4550
    rock excavation $3500 
    (+20% processing fee).

    For overall build
    - $39,000 for freshwater canal lot.
    - $246,700 for build contract price.
    - $14,970 in change orders, thus far.

    At two years since lot purchase, loan costs have added up between closing costs, interest payments, and extension fees, as well.

    0Reply
  • Rich WilkenPro Member
    Investor · Antioch, IL · Member since 2017 · 41 posts · 12 votes
    2y
    Quote from @Don M.:
    Quote from @Rich Wilken:
    Quote from @Don M.:

    The following is not to express any level of happiness or unhappiness with the build:

    Received change orders totaling $14,970 for 18 additional loads of fill dirt over allotted amount in contract (fill dirt arrived in December 2022), 7 loads of septic sand over allotted amount, and rock excavation at the septic site.

    I deal with all of those issues on new builds. Nothing uncommon there. Can you give a cost breakdown?

     For the recent change order-
    18 loads of dirt: $5310

    7 loads of sand for septic $4550
    rock excavation $3500 
    (+20% processing fee).

    For overall build
    - $39,000 for freshwater canal lot.
    - $246,700 for build contract price.
    - $14,970 in change orders, thus far.

    At two years since lot purchase, loan costs have added up between closing costs, interest payments, and extension fees, as well.


     What is the 20% processing fee?

    0Reply
  • Jose Lacayo
    Member since 2024 · 1 post · 1 vote
    2y

    Hi everyone,

    I’m on the fence of pulling the trigger on a build with Delta in North Port. My permits are ready for pick up and it’s been 13 months since giving 5 percent deposit. I purchased the lot two years ago. I’ve paid 15k already but do not have a good feeling as their customer service has been abysmal. I’ve bought three homes in Arizona since purchasing the lot in North Port and the difference between dealing with Delta and a national builder has been night and day. I’ve been given the clear to close but am experiencing cold feet. If given the opportunity, would any of you use them again? 

    1Reply
  • Adam BartomeoBusiness Member
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    2y

    See the post that I made and sent to all of the investors that I work with.

    Cape Coral / Ft. Myers Market Update Feb 2024 (biggerpockets.com)

    [email protected]239-339-3969
    Bartomeo Property Management4.7143 Reviews
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    2Reply
  • Neal Coppola
    Investor · Camas, WA · Member since 2020 · 29 posts · 29 votes
    2y
    Quote from @Jose Lacayo:

    Hi everyone,

    I’m on the fence of pulling the trigger on a build with Delta in North Port. My permits are ready for pick up and it’s been 13 months since giving 5 percent deposit. I purchased the lot two years ago. I’ve paid 15k already but do not have a good feeling as their customer service has been abysmal. I’ve bought three homes in Arizona since purchasing the lot in North Port and the difference between dealing with Delta and a national builder has been night and day. I’ve been given the clear to close but am experiencing cold feet. If given the opportunity, would any of you use them again? 


     Jose - feel free to reach out to me via PM if you would like to chat regarding my experience with what sounds like a very similar situation.

    0Reply
  • Don M.
    OP
    Member since 2021 · 135 posts · 203 votes
    2y
    Quote from @Rich Wilken:
    Quote from @Don M.:
    Quote from @Rich Wilken:
    Quote from @Don M.:

    The following is not to express any level of happiness or unhappiness with the build:

    Received change orders totaling $14,970 for 18 additional loads of fill dirt over allotted amount in contract (fill dirt arrived in December 2022), 7 loads of septic sand over allotted amount, and rock excavation at the septic site.

    I deal with all of those issues on new builds. Nothing uncommon there. Can you give a cost breakdown?

     For the recent change order-
    18 loads of dirt: $5310

    7 loads of sand for septic $4550
    rock excavation $3500 
    (+20% processing fee).

    For overall build
    - $39,000 for freshwater canal lot.
    - $246,700 for build contract price.
    - $14,970 in change orders, thus far.

    At two years since lot purchase, loan costs have added up between closing costs, interest payments, and extension fees, as well.


     What is the 20% processing fee?


     To put it simply, it's in the contract related to change orders.

    0Reply
  • Jordan Ray
    Developer · Palm City, FL · Member since 2018 · 326 posts · 99 votes
    2y

    @Don M. What is the update on this project? 

    @Tom Wang Any update on your project also?

    0Reply
  • Don M.
    OP
    Member since 2021 · 135 posts · 203 votes
    2y
    Quote from @Jordan Ray:

    @Don M. What is the update on this project? 

    @Tom Wang Any update on your project also?


     Thus far, nothing to report outside of what is in the thread already.
    Contract Jan 2022
    Lot purchase Feb 2022
    Permit passed August 2022
    Slab poured April 2023
    Roof dried in November 2023
    Plumbing, HVAC, and electric rough ins December 2023.

    Last couple month's updates stated waiting on doors and windows.  I requested another update over the weekend and am awaiting a response.  There has been work done related to the septic system, based on the change orders.
    There has been no movement in the City's inspection portal since December.  

    0Reply
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