Cape Coral New Construction
Hey BP Family,
I know many of you have pursued new construction in Cape Coral through Rent to Retirement. How was your overall experience? It has been over a year since we closed and we are still awaiting final approval. After the hurricane, we were told that the home would be completed by early summer 2023, but now it is May and we are still waiting on approval. We are now being told that there are delays due to septic approval and our 4 bedroom/2 bath plan has to be changed to 3 bedrooms plus a den. Not sure what the correlation is between the septic delay and the bedroom situation, but this certainly is not a pleasant surprise.
Have any of you experienced this and if so, what was the outcome? We are waiting to speak with someone from Rent to Retirement to figure this out, but wanted to see if anyone else has had a similar experience.
Additionally, we are being told that changing from a 4 bedroom to a 3 bed plus a den will have no affect on the value of the home or the rental income. We went into this investment and ran our numbers based on a 4 bed/2 bath. We are doing our own research, but hoping to get some input from local investors/realtors in Cape Coral to verify if this information is accurate.
Thank you in advance!
The timelines seem very standard for Cape Coral, to be at septic approval/inspection for a year if I read your post correctly.
Regarding the septic approval, my understanding is that systems are rated for number of bedrooms under an assumption of usage and per person usage. So it’s probably not big enough to meet CC codes for 4 bed. I’d be shocked if septic rating affect the rent though. Maybe pump it slightly more frequently.
Could it be a point during sales? Maybe although I don’t think it’s a significant one.
@Michael Simmonds That has to be frustrating. Have you tried to call the city or to go down there for a reality check? The hurricane no doubt had a significant impact but you need to be sure it is not being used as a convenient excuse. I do not know to say whether the 3 bed + den v 4 bed makes a difference but hard for me to believe it does not, unless it is commonly known that families can use dens as bedrooms? Check into that! I am not familiar with who you are working with but always recommend vetting any company deeply before signing and paying -- those companies tend to have a lot of overhead they need to pay - out of your bottom line. Sometimes finding small, local partners to do your own thing and do it your way and under your control can be a great way to go that has more accountability built in. But yes, that requires learning a lot and taking initiative. So maybe you are "paying" for the PASSIVE experience with delays and changes that take you for a loop.
To reiterate what @Chris Harper has said above, your timeline is right on track for what we're seeing in this area right now. He's also correct in that the septic systems are rated by the maximum total occupancy of the home (they don't count dens towards that occupancy). This is how you can keep the same system, same home layout, and just make a minor change to how the extra bedroom is filed with the city
Although not a pleasant surprise like you mentioned, luckily this is a very minor issue in reality and everything they're telling you is accurate. The 4 bed vs 3+den designation won't have any effect on the home's value, or the rental income. Tenants don't see any difference between a den and a bedroom as long as it's a functional living space, so you won't run into any issues there
It's unlikely that you would have to pump out the system more than normal with standard usage, but one thing I would recommend is to always ensure your septic alarm is fully operational. If the does fill quicker than the recommended 3-5 year pump out schedule, this alarm will let you know and prevent a backup into the home. Always be sure to educate your tenants on what this alarm is, and how to tell if it's going off so they can notify you immediately
-
Broker
- (850) 259-2910
- https://www.thesimonelligroup.com/
- [email protected]
Quote from @Chris Harper:
The timelines seem very standard for Cape Coral, to be at septic approval/inspection for a year if I read your post correctly.
Regarding the septic approval, my understanding is that systems are rated for number of bedrooms under an assumption of usage and per person usage. So it’s probably not big enough to meet CC codes for 4 bed. I’d be shocked if septic rating affect the rent though. Maybe pump it slightly more frequently.
Could it be a point during sales? Maybe although I don’t think it’s a significant one.
Thank you for the feedback Chris. Greatly appreciated. Our concern was more about the model being changed from a 4/2 to a 3/2 plus a den. We were worried that this could affect the appraised value and rental income.
Quote from @Sheryl Sitman:
@Michael Simmonds That has to be frustrating. Have you tried to call the city or to go down there for a reality check? The hurricane no doubt had a significant impact but you need to be sure it is not being used as a convenient excuse. I do not know to say whether the 3 bed + den v 4 bed makes a difference but hard for me to believe it does not, unless it is commonly known that families can use dens as bedrooms? Check into that! I am not familiar with who you are working with but always recommend vetting any company deeply before signing and paying -- those companies tend to have a lot of overhead they need to pay - out of your bottom line. Sometimes finding small, local partners to do your own thing and do it your way and under your control can be a great way to go that has more accountability built in. But yes, that requires learning a lot and taking initiative. So maybe you are "paying" for the PASSIVE experience with delays and changes that take you for a loop.
Thank you so much Sheryl. The feedback is greatly appreciated. We have vetted the company and decided to pull the trigger based on great reviews and conversations with other investors. We are taking a trip down in July to check on things. We have spoken to a few people regarding the bedroom situation and it looks like its not going to be an issue. Thanks again for the advice!
Quote from @Stetson Miller:
To reiterate what @Chris Harper has said above, your timeline is right on track for what we're seeing in this area right now. He's also correct in that the septic systems are rated by the maximum total occupancy of the home (they don't count dens towards that occupancy). This is how you can keep the same system, same home layout, and just make a minor change to how the extra bedroom is filed with the city
Although not a pleasant surprise like you mentioned, luckily this is a very minor issue in reality and everything they're telling you is accurate. The 4 bed vs 3+den designation won't have any effect on the home's value, or the rental income. Tenants don't see any difference between a den and a bedroom as long as it's a functional living space, so you won't run into any issues there
It's unlikely that you would have to pump out the system more than normal with standard usage, but one thing I would recommend is to always ensure your septic alarm is fully operational. If the does fill quicker than the recommended 3-5 year pump out schedule, this alarm will let you know and prevent a backup into the home. Always be sure to educate your tenants on what this alarm is, and how to tell if it's going off so they can notify you immediately
Thank you very much for this feedback Stetson. This is very reassuring. And I appreciate the advice regarding the septic system. This will be our first time owning properties with septic so that is great to know.
Quote from @Michael Simmonds:
Quote from @Chris Harper:
The timelines seem very standard for Cape Coral, to be at septic approval/inspection for a year if I read your post correctly.
Regarding the septic approval, my understanding is that systems are rated for number of bedrooms under an assumption of usage and per person usage. So it’s probably not big enough to meet CC codes for 4 bed. I’d be shocked if septic rating affect the rent though. Maybe pump it slightly more frequently.
Could it be a point during sales? Maybe although I don’t think it’s a significant one.
Thank you for the feedback Chris. Greatly appreciated. Our concern was more about the model being changed from a 4/2 to a 3/2 plus a den. We were worried that this could affect the appraised value and rental income.
I'm sure it won't impact the rent. I also doubt it would impact appraised value but those are a bit more unpredictable.
Hi Michael, what builder are you using? And when did your building permit get approved?
Quote from @Troy Stidd:Hi Troy,
Hi Michael, what builder are you using? And when did your building permit get approved?
We are using Beatty for one build, and Blacktip for another. As of now, neither has been submitted for final approval.