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 · 1k+ 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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  • Don M.
    OP
    Member since 2021 · 135 posts · 203 votes
    2y
    Quote from @Jeff Cody:

    @Don M. - I did a flip in Cape Coral around that same time and the permitting took 5 months as well.  I should have finished that flip in early Sept '22, but we basically just started around then, and then in late Sept '22 Hurricane Ian came through.  I needed a new roof and some more, but it could have been worse, many lost everything.  I lost money on that deal, but learned a ton.  Good luck finishing yours up!  Are you local?

    Good points.  Delays along the way, but could be worse in many ways.  Permitting and getting to the point of breaking ground was a very large part of this timeline.

    I'm not local; I've visited during the process (including 2 months after hurricane Ian). Even through that, SWFL is pretty special.   I'm looking forward to the finish.
    1Reply
  • Don M.
    OP
    Member since 2021 · 135 posts · 203 votes
    2y
    Quote from @Peter Davis:

    You're a trooper @Don M. for hanging in there. It hasn't been an easy ride for lots of folks building in Cape Coral over the past several years, but one silver lining is the property values have nearly doubled since Covid, though the market has cooled recently. 


     For sure!  I'm eager to see where the market is when this is done.

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


    Since last month's update,
    some internal paint was done and siding/lath was installed.
    Tile on site, but not installed yet.
    Estimated completion date quoted by builder was pushed back again.

    0Reply
  • Don M.
    OP
    Member since 2021 · 135 posts · 203 votes
    2y

    Tile installed

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    2y
    Quote from @Don M.:

    Tile installed


    better late than never !!!
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  • Jeff CodyPro Member
    Wholesaler · Estero, FL · Member since 2020 · 52 posts · 20 votes
    2y
    Quote from @Don M.:

    Tile installed


     Looking great and getting close!!!

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

    You're almost there, Don Miller.  I'm rooting for this to be wrapped up! 

    1Reply
  • Don M.
    OP
    Member since 2021 · 135 posts · 203 votes
    2y
    Quote from @Joe R.:

    You're almost there, Don Miller.  I'm rooting for this to be wrapped up! 


     Thanks Joe!
    Are your projects at about completion?  I know we were at about the same point for a little while, although I think you started the process about a year after I did with another builder.

    0Reply
  • Joe R.
    Investor · Cape Coral, FL · Member since 2017 · 39 posts · 35 votes
    2y
    Quote from @Don M.:
    Quote from @Joe R.:

    You're almost there, Don Miller.  I'm rooting for this to be wrapped up! 


     Thanks Joe!
    Are your projects at about completion?  I know we were at about the same point for a little while, although I think you started the process about a year after I did with another builder.


     The first build is about 2-3 weeks away from CO.  We're awaiting culvert inspection so they can finish the site grading, driveway, entrance way and landscaping.  They're doing the backsplash and electrical + plumbing finishes now.  Tile done, trim done, final painting happening as well.  I did a punch last week with the builder.  

    I'm on the move, will share a few pics when I get back to my PC.  

    1Reply
  • Don M.
    OP
    Member since 2021 · 135 posts · 203 votes
    2y
    Quote from @Joe R.:
    Quote from @Don M.:
    Quote from @Joe R.:

    You're almost there, Don Miller.  I'm rooting for this to be wrapped up! 


     Thanks Joe!
    Are your projects at about completion?  I know we were at about the same point for a little while, although I think you started the process about a year after I did with another builder.


     The first build is about 2-3 weeks away from CO.  We're awaiting culvert inspection so they can finish the site grading, driveway, entrance way and landscaping.  They're doing the backsplash and electrical + plumbing finishes now.  Tile done, trim done, final painting happening as well.  I did a punch last week with the builder.  

    I'm on the move, will share a few pics when I get back to my PC.  


    Great news! Glad you're at the finish line. What is your plan with them? LTR, STR, sell?

    0Reply
  • Stephen Smith
    Member since 2024 · 25 posts · 32 votes
    2y

     It has been a learning experience, for sure.  I will say, the city of Cape Coral's permitting was painfully backed up at the time, and then they shifted to a new system which caused other delays.  Still not 100% sure what I will do at the end of this (we are a long, long way from the 3.5% rates and hot, hot sellers market of December 2021/Jan 2022 when I started looking into this).  I am hoping a small profit is still on the table, but time will tell.


    If anybody tells you the delays are due to permitting within the City of Cape Coral, I would argue you are being misadvised.  Florida statute is clear, upon receipt of a valid permit application, the building department must issue the permit or deny it with valid reason within 30 business days.  For every day after the 30-days, the permit fee is reduced by 10% of the permit fee.  Hurricane Ian did delay things slightly, but we are not talking about long delays.  Also, private provider plan review is an option and reduces the lead time for getting a permit.

    You can check the status of your permit applications using the City of Cape Coral web portal, link below.
    https://energovweb.capecoral.gov/EnerGovProd/selfservice#/ho...
    3Reply
  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    2y
    Quote from @Stephen Smith:

     It has been a learning experience, for sure.  I will say, the city of Cape Coral's permitting was painfully backed up at the time, and then they shifted to a new system which caused other delays.  Still not 100% sure what I will do at the end of this (we are a long, long way from the 3.5% rates and hot, hot sellers market of December 2021/Jan 2022 when I started looking into this).  I am hoping a small profit is still on the table, but time will tell.


    If anybody tells you the delays are due to permitting within the City of Cape Coral, I would argue you are being misadvised.  Florida statute is clear, upon receipt of a valid permit application, the building department must issue the permit or deny it with valid reason within 30 business days.  For every day after the 30-days, the permit fee is reduced by 10% of the permit fee.  Hurricane Ian did delay things slightly, but we are not talking about long delays.  Also, private provider plan review is an option and reduces the lead time for getting a permit.

    You can check the status of your permit applications using the City of Cape Coral web portal, link below.
    https://energovweb.capecoral.gov/EnerGovProd/selfservice#/ho...

     finally someone with some knowledge 

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

    @Don M. and @Joe R. I'm glad to see you're both nearing the finish line. The last lap can be frustratingly long I'm finding, but you'll get there. On the sell-side, I'm seeing a big influx of buyers coming from Miami to buy new construction in Cape Coral. Three of my pending contracts right now are buyers from there. 

    1Reply
  • Joe R.
    Investor · Cape Coral, FL · Member since 2017 · 39 posts · 35 votes
    2y
    Quote from @Peter Davis:

    @Don M.and @Joe R. I'm glad to see you're both nearing the finish line. The last lap can be frustratingly long I'm finding, but you'll get there. On the sell-side, I'm seeing a big influx of buyers coming from Miami to buy new construction in Cape Coral. Three of my pending contracts right now are buyers from there. 

    Don, I'm going to sell this first round of builds. Glad you're moving.  

    Peter, There is a price out going on in Miami, and there is definitely an influx to Lehigh/North Ft Myers and Cape Coral from this area.  I'll have one ready in July '24 if you have buyers.  

    Newly built homes are still selling well it seems, the older inventory buyers seem a bit more discerning over and are fussier on the price.  

    0Reply
  • Joe R.
    Investor · Cape Coral, FL · Member since 2017 · 39 posts · 35 votes
    2y
    Quote from @Stephen Smith:

     It has been a learning experience, for sure.  I will say, the city of Cape Coral's permitting was painfully backed up at the time, and then they shifted to a new system which caused other delays.  Still not 100% sure what I will do at the end of this (we are a long, long way from the 3.5% rates and hot, hot sellers market of December 2021/Jan 2022 when I started looking into this).  I am hoping a small profit is still on the table, but time will tell.


    If anybody tells you the delays are due to permitting within the City of Cape Coral, I would argue you are being misadvised.  Florida statute is clear, upon receipt of a valid permit application, the building department must issue the permit or deny it with valid reason within 30 business days.  For every day after the 30-days, the permit fee is reduced by 10% of the permit fee.  Hurricane Ian did delay things slightly, but we are not talking about long delays.  Also, private provider plan review is an option and reduces the lead time for getting a permit.

    You can check the status of your permit applications using the City of Cape Coral web portal, link below.
    https://energovweb.capecoral.gov/EnerGovProd/selfservice#/ho...

    Stephen, When I open the link to the Cape Coral site, its just to the Citizens shared services page.  Is there a specific link to the 30 day review timeline and the implications if they don't review it in time (State or via Cape Coral sites)? 

    0Reply
  • Stephen Smith
    Member since 2024 · 25 posts · 32 votes
    2y

    Hi Joe,

    Here is a link to the Florida statute regarding a local building department issuing permits within 30 working days.  I also enclose below the text of the relevant section for ease.

    https://www.flsenate.gov/laws/statutes/2020/553.79

    QUOTE

    (14) A building permit for a single-family residential dwelling must be issued within 30 working days of application therefor unless unusual circumstances require a longer time for processing the application or unless the permit application fails to satisfy the Florida Building Code or the enforcing agency’s laws or ordinances.

    UNQUOTE

    The previous link to the City of Cape Coral citizens portal lets individuals see permit details for a specific property address, the progress with applications, and if not using a private provider the status of inspections.  Building departments are obligated to provide these services online.

    You can also see code compliance issues using the same search facility.

    Hope this helps,

    Steve

    0Reply
  • Joe R.
    Investor · Cape Coral, FL · Member since 2017 · 39 posts · 35 votes
    2y
    Quote from @Stephen Smith:

    Hi Joe,

    Here is a link to the Florida statute regarding a local building department issuing permits within 30 working days.  I also enclose below the text of the relevant section for ease.

    https://www.flsenate.gov/laws/statutes/2020/553.79

    QUOTE

    (14) A building permit for a single-family residential dwelling must be issued within 30 working days of application therefor unless unusual circumstances require a longer time for processing the application or unless the permit application fails to satisfy the Florida Building Code or the enforcing agency’s laws or ordinances.

    UNQUOTE

    The previous link to the City of Cape Coral citizens portal lets individuals see permit details for a specific property address, the progress with applications, and if not using a private provider the status of inspections.  Building departments are obligated to provide these services online.

    You can also see code compliance issues using the same search facility.

    Hope this helps,

    Steve

    So, what I find they're doing in the Cape, is they will pick on something very minor within the permit package, to send it back to you/say its not a complete package, and the clock restarts while you have to go fix it.  I've just went through this with 4 builds this year, and this is what they do to work around this.  They generally have out of college/construction unseasoned folks doing the paper permit reviews from what I've seen based on the comments that come back.  Private is an option too, but again, a pay for service on top of the permit fees, etc.  
    0Reply
  • Stephen Smith
    Member since 2024 · 25 posts · 32 votes
    2y

    You are correct, this can happen, however, if your application is full and complete this is an expectation.  Also, if you know the supervisor to speak to when you get an issue, this helps ;-)

    With private provider plan review, this is indeed an option, and the building department is required to reduce the permit fee.  I find this option best if you are on a tight time frame and need to save a couple of weeks.  I wish the Department of Health would accept private provider plan reviews for septic tank permits.  They are currently 10 weeks, and required before you can make a permit application for a house.

    0Reply
  • Joe R.
    Investor · Cape Coral, FL · Member since 2017 · 39 posts · 35 votes
    2y
    Quote from @Stephen Smith:

    You are correct, this can happen, however, if your application is full and complete this is an expectation.  Also, if you know the supervisor to speak to when you get an issue, this helps ;-)

    With private provider plan review, this is indeed an option, and the building department is required to reduce the permit fee.  I find this option best if you are on a tight time frame and need to save a couple of weeks.  I wish the Department of Health would accept private provider plan reviews for septic tank permits.  They are currently 10 weeks, and required before you can make a permit application for a house.


     Good luck with a perfectly complete application that makes it by them on the first pass! It's a lot of back and forth, inevitably, and this is why its taking so long.  I've never waited 10 weeks for septic approvals on any of my Cape builds.  

    0Reply
  • Adrian Lemus
    Contractor · Miami, FL · Member since 2020 · 146 posts · 49 votes
    2y

    I don’t know how I haven’t seen this post.

    I’m a contractor and also building at Cape Coral for investors. All of my permits have been approved within +\- 30 Days. I started the first one in January and going to request C/O next week. I have another 5 that I’m working. 

    The longest delay is the floor plans. 

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

    You're spot on @Joe R. And the housing stock in Miami is older and so much more expensive for what you get in comparison to new construction in Cape Coral. I think a lot of the buyers see the value and appreciate the slower/quieter pace of life in our area, especially young families. I'm doing a lot of promotion in the Miami area of my listings so I'm compiling a list of buyers. Keep me posted on your progress and I might have someone for you when it's complete. 

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

    You're spot on @Joe R. And the housing stock in Miami is older and so much more expensive for what you get in comparison to new construction in Cape Coral. I think a lot of the buyers see the value and appreciate the slower/quieter pace of life in our area, especially young families. I'm doing a lot of promotion in the Miami area of my listings so I'm compiling a list of buyers. Keep me posted on your progress and I might have someone for you when it's complete. 


     miami you can build at the same cost per unit and sell at the same cost per unit in south miami dade in homestead, florida city right now. there are 10 different zoning and entitlement loopholes and lots are available from 75k-130k. miami does not have that old of housing stock it has more new deliveries than probably 95% of the state of florida. what are you talking about? Cape Coral deliveries are way less than miami dade and also overbuilt and oversupplied 

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  • Neal Coppola
    Investor · Camas, WA · Member since 2020 · 29 posts · 29 votes
    2y
    Quote from @Don M.:
    Quote from @Peter Davis:

    You're a trooper @Don M. for hanging in there. It hasn't been an easy ride for lots of folks building in Cape Coral over the past several years, but one silver lining is the property values have nearly doubled since Covid, though the market has cooled recently. 


     For sure!  I'm eager to see where the market is when this is done.

     Don -

    You've got quite the fan base here on Bigger Pockets all wishing that you have a positive outcome.  Having said that, any updates that you can share?  We're all rooting for you!!!

    0Reply
  • Don M.
    OP
    Member since 2021 · 135 posts · 203 votes
    2y
    Quote from @Neal Coppola:
    Quote from @Don M.:
    Quote from @Peter Davis:

    You're a trooper @Don M. for hanging in there. It hasn't been an easy ride for lots of folks building in Cape Coral over the past several years, but one silver lining is the property values have nearly doubled since Covid, though the market has cooled recently. 


     For sure!  I'm eager to see where the market is when this is done.

     Don -

    You've got quite the fan base here on Bigger Pockets all wishing that you have a positive outcome.  Having said that, any updates that you can share?  We're all rooting for you!!!


     Appreciate the good vibes.
    We have a driveway, shingles, canal line is cleared and turbidity screen in place.  Home stretch, I hope.

    3Reply
  • Neal Coppola
    Investor · Camas, WA · Member since 2020 · 29 posts · 29 votes
    1y
    Quote from @Don M.:
    Quote from @Neal Coppola:
    Quote from @Don M.:
    Quote from @Peter Davis:

    You're a trooper @Don M. for hanging in there. It hasn't been an easy ride for lots of folks building in Cape Coral over the past several years, but one silver lining is the property values have nearly doubled since Covid, though the market has cooled recently. 


     For sure!  I'm eager to see where the market is when this is done.

     Don -

    You've got quite the fan base here on Bigger Pockets all wishing that you have a positive outcome.  Having said that, any updates that you can share?  We're all rooting for you!!!


     Appreciate the good vibes.
    We have a driveway, shingles, canal line is cleared and turbidity screen in place.  Home stretch, I hope.


     What's the good word?

    0Reply
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