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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  • Kishore Siva
    Ossining, NY · Member since 2016 · 1 post · 0 votes
    1y

    Hello- also in a longterm build in Cape Coral for new construction. Current status is that the Dept of Health has not yet issued the Septic Permit yet. This has been ongoing since August. I am visiting CC later this month, and will call again this week. 

    Is there any benefit to visiting DoH offices in person? When calling or visiting, are there any suggestions to get them to expedite this?  I know the average turnaround for Septic Permit has been 10-12 weeks, but we are now at 20 weeks, which seems excessive.

    If anyone has experience with this, would welcome any suggestions.  Thank you. 

    0Reply
  • Adrian Lemus
    Contractor · Miami, FL · Member since 2020 · 145 posts · 49 votes
    1y
    Quote from @Kishore Siva:

    Hello- also in a longterm build in Cape Coral for new construction. Current status is that the Dept of Health has not yet issued the Septic Permit yet. This has been ongoing since August. I am visiting CC later this month, and will call again this week. 

    Is there any benefit to visiting DoH offices in person? When calling or visiting, are there any suggestions to get them to expedite this?  I know the average turnaround for Septic Permit has been 10-12 weeks, but we are now at 20 weeks, which seems excessive.

    If anyone has experience with this, would welcome any suggestions.  Thank you. 

    I’m a contractor building in Cape Coral and it usually takes 4-6 weeks to get that permit. There must be a reason that it is taking so long, but as long as everything got submitted correctly and paid it shouldn’t take that long. Permits usually takes an average of 4 weeks to get. 
    0Reply
  • Kristi KandelPro Member
    Developer · Fort Myers Beach, FL · Member since 2018 · 383 posts · 195 votes
    1y
    Quote from @Kishore Siva:

    Hello- also in a longterm build in Cape Coral for new construction. Current status is that the Dept of Health has not yet issued the Septic Permit yet. This has been ongoing since August. I am visiting CC later this month, and will call again this week. 

    Is there any benefit to visiting DoH offices in person? When calling or visiting, are there any suggestions to get them to expedite this?  I know the average turnaround for Septic Permit has been 10-12 weeks, but we are now at 20 weeks, which seems excessive.

    If anyone has experience with this, would welcome any suggestions.  Thank you. 

     @Kishore Siva 100% go into their office and request a meeting to understand where they are in the review process, what questions they have, and outline a path to obtaining a permit. The squeaky wheel gets the results. 

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    1y
    Quote from @Kristi Kandel:
    Quote from @Kishore Siva:

    Hello- also in a longterm build in Cape Coral for new construction. Current status is that the Dept of Health has not yet issued the Septic Permit yet. This has been ongoing since August. I am visiting CC later this month, and will call again this week. 

    Is there any benefit to visiting DoH offices in person? When calling or visiting, are there any suggestions to get them to expedite this?  I know the average turnaround for Septic Permit has been 10-12 weeks, but we are now at 20 weeks, which seems excessive.

    If anyone has experience with this, would welcome any suggestions.  Thank you. 

     @Kishore Siva 100% go into their office and request a meeting to understand where they are in the review process, what questions they have, and outline a path to obtaining a permit. The squeaky wheel gets the results. 


    I had a project in Sanford FLA that was the historic district and it was a nightmare ( never again) after months of BS  thats what I had to do.. Book a flight from Portland to Orlando rent a hotel and car and go to the planning department and building department in person and get to the folks that were running the permit and discuss paths to completion.. Real Estate is a belly to belly business. Get much more done in person than through  email or text just sayin.
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    1Reply
  • Joe R.
    Investor · Cape Coral, FL · Member since 2017 · 39 posts · 35 votes
    1y
    Quote from @Kishore Siva:

    Hello- also in a longterm build in Cape Coral for new construction. Current status is that the Dept of Health has not yet issued the Septic Permit yet. This has been ongoing since August. I am visiting CC later this month, and will call again this week. 

    Is there any benefit to visiting DoH offices in person? When calling or visiting, are there any suggestions to get them to expedite this?  I know the average turnaround for Septic Permit has been 10-12 weeks, but we are now at 20 weeks, which seems excessive.

    If anyone has experience with this, would welcome any suggestions.  Thank you. 

    Kishora -- Anytime we've had holdups in permits I email (generally, they're very responsive), and I tend to take the "I'm trying to get insight into the objection item, and how can we help" tone, and usually, I find a willing partner on the other end of the phone.  10-12 weeks is a while, usually, its running 4-6 weeks for the last few builds we've done.  Good luck with this.  
    1Reply
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