Considering an STR / MTR in Cape Coral FL

Cape Coral, Florida
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Considering an STR / MTR in Cape Coral FL

Rodney MenendezPro Member
Developer · South West Florida · Member since 2020 · 74 posts · 53 votes

Hi, I am building a single family house with a pool and no canal in Cape Coral and I am considering renting it as an STR / MTR when I get the CO. Would you be able to share your experiences, If you are an investor, agent, or property manager with STRs or MTRs in Cape Coral? In your opinion, does the house needs to have Golf access to be a successful STR? Would you be willing to recommend any cleaners? Thank you :)

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Stetson MillerBusiness Member
Real Estate Broker · Fort Myers, FL · Member since 2019 · 576 posts · 423 votes
3y

@Rodney Menendez Unfortunately that is in an area that I would currently consider lower demand. The Southern end of Cape Coral is where you will typically see the highest demand and returns (South of Veteran's Memorial Pkwy). There's also potential for properties South of SR-78 (Pine Island Rd), East of Santa Barbara Blvd, and on the North Side of Veteran's Memorial Pkwy

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  • Stetson MillerBusiness Member
    Real Estate Broker · Fort Myers, FL · Member since 2019 · 576 posts · 423 votes
    3y

    Hi @Rodney Menendez

    Canal and/or gulf access is not necessary to operate a successful STR, those are simply in a different purchase price range and income generation scale. With that being said, the location of the property is something that I would consider to be critical to your success. STR's are becoming a very popular strategy in Cape Coral, so there's no shortage of homes being offered in high-demand areas to compare to. You will be at an advantage with the property being new construction, but without the property being in the right place and not being waterfront, that could be a formula for failure

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  • Rodney MenendezPro Member
    OP
    Developer · South West Florida · Member since 2020 · 74 posts · 53 votes
    3y

    @Stetson Miller thank you for the reply. What area in Cape Coral do you recommend? My property is near Chiquita Blvd N and Embers Pkwy W and it has city water

    [email protected]239-288-0702
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  • Stetson MillerBusiness Member
    Real Estate Broker · Fort Myers, FL · Member since 2019 · 576 posts · 423 votes
    3y

    @Rodney Menendez Unfortunately that is in an area that I would currently consider lower demand. The Southern end of Cape Coral is where you will typically see the highest demand and returns (South of Veteran's Memorial Pkwy). There's also potential for properties South of SR-78 (Pine Island Rd), East of Santa Barbara Blvd, and on the North Side of Veteran's Memorial Pkwy

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  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    This is a cool place. Love that someone can come in here and find the information right away from someone who knows the deets on the area.

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  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    3y

    While slightly different markets, we manage an STR in Naples that is a nice pool home with no canal, about 5-7 mins from the beach. It does well, so I agree with others having canal access is not imperative. Most of our houses are located in Tampa area and very few have any boat access and all are successful as well.

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  • Lorraine Patterson
    Rental Property Investor · Queens, NY · Member since 2019 · 94 posts · 27 votes
    3y

    @Stetson Miller would you recommend buying a lot on NE or SE Cape Coral?

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  • Stetson MillerBusiness Member
    Real Estate Broker · Fort Myers, FL · Member since 2019 · 576 posts · 423 votes
    3y

    Hi @Lorraine Patterson,

    That would be completely dependent upon the intended use for the lot. If it was to hold the lot for appreciation, SE. If it was to build a luxury single family home for future STR usage, SE. If it was to build a single or multifamily rental and to keep your cost basis as low as possible, NE

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  • Daniel Murphy
    Financial Advisor · Saint Paul, MN · Member since 2016 · 190 posts · 143 votes
    3y

    @Rodney Menendez, we're just wrapping up our first 12 months with our STR in CC. We have a 3/2 in SW cape, (Trafalgar & Santa Barbara) with a pool and no canal access.

    I don't think the canal access is a dealbreaker.  We had great success in year one despite having a lot to learn.  We had probably a 70-75% occupancy rate. Year two should be much better.  

    I'd be happy to talk more if you ever want.  Reach out with any questions! I can share my contacts with you also.  

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  • Rodney MenendezPro Member
    OP
    Developer · South West Florida · Member since 2020 · 74 posts · 53 votes
    3y

    Hi @Daniel Murphy Thank you very much, I have a couple of long term rentals in Cape Coral and a STR in Pigeon Forge but I wasn't very sure about STRs in Cape Coral. I feel much better now :) I would love to talk to you

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  • Lyndsay Zwirlein
    Lender · Member since 2020 · 331 posts · 209 votes
    3y

    We looked into that area for an STR about 6 months ago and actually put a few offers in. In speaking with several agents, they said it's very popular for snowbirds and people traveling internationally, so you might have success with MTRs and/or catering to that snowbird market.

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  • Lorraine Patterson
    Rental Property Investor · Queens, NY · Member since 2019 · 94 posts · 27 votes
    3y

    @Stetson Miller I would buy and hold and potentially build a SFH for STR, depending on the Market.

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  • Justin Rademacher
    Real Estate Agent · Member since 2022 · 61 posts · 31 votes
    3y

    There are numerous STRs in Cape Coral that do not have canal access and do very well. I have helped a few investors acquire STRs in this market thus far. If you are not on the canal, the pool is an absolute must in order to maximize rents. Another great tip would be to have an alexa out by the pool as well. Its very small investment for a big return on guest experiences. You may want to also have bikes etc for renters to use and provide a list of great things to do in the area. 

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  • Rodney MenendezPro Member
    OP
    Developer · South West Florida · Member since 2020 · 74 posts · 53 votes
    3y

    Hello @Justin Rademacher thank you for your feedback :)

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  • Stetson MillerBusiness Member
    Real Estate Broker · Fort Myers, FL · Member since 2019 · 576 posts · 423 votes
    3y

    @Lorraine Patterson If STR's are a potential strategy at all, I would recommend sticking with the general Southern region

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  • Peter Davis
    Real Estate Broker · Cape Coral, FL · Member since 2014 · 382 posts · 300 votes
    3y

    I have a client who owns a STR property management business in Cape Coral and she's given me an education over the years on operating STR's in the Cape. She's originally from Germany which helps as we have a lot of German visitors year round.

    You definitely earn a premium for waterfront homes, especially gulf access, but off-water pool homes in nice neighborhoods also do well and the entry price point is significantly less. For $550-$650K you'll have some good options. Sometimes the homes can be purchased turnkey or partially/fully furnished which can save some money (and effort), provided the furnishings are attractive and in good shape.

    Here are a few of her tips:

    3 bedrooms are fine but +den or a 4th bedroom is better. Sleeping eight people+ is a good thing and so is having a bunk room for the kiddos. 

    A fenced (or hedged) rear yard is a must for privacy.

    A foosball, ping-pong, or pool table is a good feature to have. 

    Provide at least two adult bikes and two children's bikes.

    Rentals are slower in the off-season (between Easter and Christmas) so any amenity helps. I have a client who purchased a used Xbox and 2 controllers for the 4th bedroom (with bunkbed) in his STR. Kids and teenagers could log in with their own account and play, and it's a big hit.

    Hope this helps!

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  • Rodney MenendezPro Member
    OP
    Developer · South West Florida · Member since 2020 · 74 posts · 53 votes
    3y

    Hello @Peter Davis that is definitely great info. Thank you 😊 

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  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    Hey @Peter Davis, so the slow season is April to Dec? 

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  • Peter Davis
    Real Estate Broker · Cape Coral, FL · Member since 2014 · 382 posts · 300 votes
    3y

    @Michael Baum Slower than peak season, yes, which is Dec 20 to March 31 per my PM.

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  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Rodney Menendez:

    Hi, I am building a single family house with a pool and no canal in Cape Coral and I am considering renting it as an STR / MTR when I get the CO. Would you be able to share your experiences, If you are an investor, agent, or property manager with STRs or MTRs in Cape Coral? In your opinion, does the house needs to have Golf access to be a successful STR? Would you be willing to recommend any cleaners? Thank you :)

     Well just today I was speaking my old buddy/ client who has a huge business in the Cape. He owns rentals and builds properties. Well the numbers made sense, build all in 330kish, sell for about 460k, sounds great. Well then I spoke with a mortgage broker who told me NO!! He said the insurance is a killer, interest rates still going higher, you HOPE in a year from now pricing will still be strong and (sorry but I have to) if this clown gets reelected America is going to continue to decline. Please let's not make this into a political post, I am just saying what we all see is happening. So be careful about buying there. I lost my shirt back in 07- 08, 11 houses poof gone. 

    All the best  

    BTW Gulf access has NOTHING to do with renting it, just the amount you can rent for. Also are short term renters going to have a boat :) , most likely no! 

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  • Bob Crane
    Sugar Grove, IL · Member since 2015 · 51 posts · 17 votes
    3y
    Quote from @Stetson Miller:

    @Rodney Menendez Unfortunately that is in an area that I would currently consider lower demand. The Southern end of Cape Coral is where you will typically see the highest demand and returns (South of Veteran's Memorial Pkwy). There's also potential for properties South of SR-78 (Pine Island Rd), East of Santa Barbara Blvd, and on the North Side of Veteran's Memorial Pkwy

    Do you think the seven islands development will increase demand for that side of the Cape?
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  • Zach Edelman
    Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
    3y

    Did a loan two months ago for the acquisition of a turnkey STR in Cape Coral, FL. So far it's the slow season so nothing tangible to report, however the Air DNA for the property was quite strong when we pulled the projections for the loan.

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  • Stetson MillerBusiness Member
    Real Estate Broker · Fort Myers, FL · Member since 2019 · 576 posts · 423 votes
    3y

    @Bob Crane In my opinion, I don't think a single attraction like that is enough to justify an STR strategy in that far Northern area, but if you were to move forward anyways with that in mind, that development will likely have some minor positive impact on demand

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  • Adam BartomeoBusiness Member
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    3y

    From what we are seeing here the STR market is completely saturated. Prices have been driven down due to the large inventory and the impact of the storm. Owns are scrambling to sell or transition into an annual rental.

    I would not recommend an STR in the area you are building as the demand in that area is low and you are further from what Cape Coral has to offer.

    Having a canal is recommended as an STR because it will give the guest more utility and you would get higher pricing.

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  • Bob Crane
    Sugar Grove, IL · Member since 2015 · 51 posts · 17 votes
    3y
    Quote from @Adam Bartomeo:

    From what we are seeing here the STR market is completely saturated. Prices have been driven down due to the large inventory and the impact of the storm. Owns are scrambling to sell or transition into an annual rental.

    I would not recommend an STR in the area you are building as the demand in that area is low and you are further from what Cape Coral has to offer.

    Having a canal is recommended as an STR because it will give the guest more utility and you would get higher pricing.


     Adam, can you provide what key data you are seeing that tells you str is saturated?

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  • Nick Sanders
    Investor · Stockbridge Ga · Member since 2019 · 29 posts · 21 votes
    3y

    Bought a property in Cape Coral in Sept 2022 a week later it was hit by Hurricane Ian. A few days after the storm my wife and I with the kids went down to demo the walls and interior to control mold and start cleaning sludge out of the pool from canal overflow.
    We have just about finished with all repairs and furnishings to put it on the STR market. If the market works out and turns out great all is good, if the market turns down oh well my wife kids and I vacation their regularly anyway as we enjoy the area and have old friends that move to Fort Myers.

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