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Jake Chial
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Looking to start VRBO STR in south Cape Coral this year.

Jake Chial
Posted Mar 2 2023, 14:36

Hello all,

I'm looking to start doing STR in cape coral. I spent 2021-2022 living out there. I like the area SE of cape coral pkwy. Based on what I have seen renters could ride a bike to the beach and be within walking distance to a lot of the restaurants. The current going rate as most of you know, on the water with a pool, is 1+Mill for a newer build. The houses I'm looking at are between 1-1.3M. After looking at airbnb and vrbo these house could rent for 500-800 a night, and most are booked till mid April. Anyone got experience with STR in this area? What could I expect to cash flow per year including on and off season?

Thanks

Jake

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Andrew Steffens
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Andrew Steffens
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  • Tampa, FL
Replied Mar 2 2023, 15:14

Hey Jake - I manage primarily in Tampa area but have experience including 1 active in Naples. While I personally love that area, if you are looking for a great cashflow and ROI right now probably is not great there. The house we have in Naples was $1.1M and rents ok at $400-800 per night. Was projected to gross $100k a year before Ian hit. Ian has stigmatized the area a little I think. You can get $100k gross on a $600k investment in Pinellas County. I hope that helps!

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Peter Davis
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  • Real Estate Broker
  • Cape Coral, FL
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Peter Davis
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  • Real Estate Broker
  • Cape Coral, FL
Replied Mar 2 2023, 15:52

@Jake Chial

I do a lot of work in SE Cape Coral and the Yacht Club. My STR property manager can run an income analysis broken out by projected monthly rents (winter, shoulder months, summer, etc.) if you're interested.

Happy to help!

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Jake Chial
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Jake Chial
Replied Mar 2 2023, 16:48
Quote from @Andrew Steffens:

Hey Jake - I manage primarily in Tampa area but have experience including 1 active in Naples. While I personally love that area, if you are looking for a great cashflow and ROI right now probably is not great there. The house we have in Naples was $1.1M and rents ok at $400-800 per night. Was projected to gross $100k a year before Ian hit. Ian has stigmatized the area a little I think. You can get $100k gross on a $600k investment in Pinellas County. I hope that helps!


Andrew,

I did wonder that question, if two less expensive houses will bring more in vs 1 big one. I have, on the other hand, heard stories of people cleaning up on these canal properties. How much of that is true IDK. My parents are in the fort myers area. A lot of their friends are coming down to the cape/fort myers area and having a hard time finding places to rent. Granted they are looking for seasonal

That area in the cape makes sense to me. Your close to beach access, a lot of restaurants, close to downtown fort myers...Those that have experience, would 2 houses off the water but in that area. Bring more STR cash flow vs 1 on the water? I would have 4 bed on either one. Looking at ~3000sqft houses

Thanks

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Jake Chial
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Jake Chial
Replied Mar 2 2023, 16:53
Quote from @Peter Davis:

@Jake Chial

I do a lot of work in SE Cape Coral and the Yacht Club. My STR property manager can run an income analysis broken out by projected monthly rents (winter, shoulder months, summer, etc.) if you're interested.

Happy to help!


Peter. That would be great
thanks

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Brooklyn McCarty
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Brooklyn McCarty
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Replied Mar 2 2023, 17:42

Cashflow is going to vary from each investor. Depends on what your loan looks like, how you manage, and many other factors. Take a look at AirDNA, the enemy method, STR Insights to get a better idea.

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Andrew Steffens
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Andrew Steffens
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Replied Mar 2 2023, 18:25
Quote from @Jake Chial:
Quote from @Andrew Steffens:

Hey Jake - I manage primarily in Tampa area but have experience including 1 active in Naples. While I personally love that area, if you are looking for a great cashflow and ROI right now probably is not great there. The house we have in Naples was $1.1M and rents ok at $400-800 per night. Was projected to gross $100k a year before Ian hit. Ian has stigmatized the area a little I think. You can get $100k gross on a $600k investment in Pinellas County. I hope that helps!


Andrew,

I did wonder that question, if two less expensive houses will bring more in vs 1 big one. I have, on the other hand, heard stories of people cleaning up on these canal properties. How much of that is true IDK. My parents are in the fort myers area. A lot of their friends are coming down to the cape/fort myers area and having a hard time finding places to rent. Granted they are looking for seasonal

That area in the cape makes sense to me. Your close to beach access, a lot of restaurants, close to downtown fort myers...Those that have experience, would 2 houses off the water but in that area. Bring more STR cash flow vs 1 on the water? I would have 4 bed on either one. Looking at ~3000sqft houses

Thanks


 Typically in my experience a 6 bedroom home in my main market of clearwater/st pete area would do more than 2 3 bedrooms houses.  Typically.  This is numbers I am used to (all variables as same as possible so lets assume renovated, well stocked and furnished with a pool 5 mins from beach):

3 Bedroom = $80k average purchase price $550k

4 Bedroom = $130k average purchase price $700k

5/6 Bedroom = $180k average purchase price $850k

Hope that makes sense and helps in some way

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Adam Bartomeo
Property Manager
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  • Real Estate Broker
  • Cape Coral, FL
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Adam Bartomeo
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Replied Mar 3 2023, 04:42

In season we normally get around $350 - $450 for a 3/2 STR with a pool and gulf access canal that is south of Cape Coral Pkwy. Depending on the house it is feasible to more. It normally stay fully booked from Jan - March. Outside of season we get $200 - $250 and it does not stay fully booked. The amount of booking will range from 1 - 3 weeks out of the month. Being close to downtown is a big plus since guests would be close to the restaurants and the bridges. Let me know if I can help in any way.

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Jake Chial
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Jake Chial
Replied Mar 3 2023, 08:45
Quote from @Adam Bartomeo:

In season we normally get around $350 - $450 for a 3/2 STR with a pool and gulf access canal that is south of Cape Coral Pkwy. Depending on the house it is feasible to more. It normally stay fully booked from Jan - March. Outside of season we get $200 - $250 and it does not stay fully booked. The amount of booking will range from 1 - 3 weeks out of the month. Being close to downtown is a big plus since guests would be close to the restaurants and the bridges. Let me know if I can help in any way.


Good info. The numbers that @Andrew Steffens gave makes sense to do rentals. If Im spending 1.2M on a house my nut will be right around 84k per year. This would be a 4 bed room house. Based on the VRBO estimate I would break even. That doesn't make a lot of sense to me. If I bump the bedroom up to 6 it instantly goes to 200k. That is in line with what Andrew is saying. I don't see 6 bedroom houses vary often. Its mainly 3/4 plus a den/office.

Adam,

The last two years what has your str cash flowed?

Thanks

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Alli Breighner
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Alli Breighner
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Replied Mar 3 2023, 10:52

Hi Jake- I'd love to discuss STRs with you.

Feel free to shoot me a DM if you're interested. Would love to connect!

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Jake Chial
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Jake Chial
Replied Mar 3 2023, 16:02
Quote from @Brooklyn McCarty:

Cashflow is going to vary from each investor. Depends on what your loan looks like, how you manage, and many other factors. Take a look at AirDNA, the enemy method, STR Insights to get a better idea.

 @Brooklyn McCarty

I have never used the https://www.airdna.co is this it? Does it give a pretty good judge?

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Brooklyn McCarty
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Brooklyn McCarty
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Replied Mar 4 2023, 20:14
Quote from @Jake Chial:
Quote from @Brooklyn McCarty:

Cashflow is going to vary from each investor. Depends on what your loan looks like, how you manage, and many other factors. Take a look at AirDNA, the enemy method, STR Insights to get a better idea.

 @Brooklyn McCarty

I have never used the https://www.airdna.co is this it? Does it give a pretty good judge?

Always use multiple data sources, but it is a good one 

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Kirstin Moll
  • Real Estate Agent
  • Cape Coral
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Kirstin Moll
  • Real Estate Agent
  • Cape Coral
Replied Mar 10 2023, 07:18

I’m not sure if you’re looking for a project but since Hurricane Ian, there are quite a few homes that need renovation. So you can get a deal. The only thing you need to watch out for is the 50% rule. But SE cape is a great place to invest right now as we build up the downtown area. I tell all my clients SE cape and NW cape are the best places to get in now because bigger developments are coming soon in those areas. 

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Kevin Bartlett
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Kevin Bartlett
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Replied Mar 11 2023, 07:58

Hi Jake- I agree with Kirstin that there a lot of homes in the Cape that need reno's after Ian and you can definitely get a deal. There is a shortage of annual rentals if you ever thought about going that route instead of the STR route, thoughts on that?

You can always shoot me a DM too

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Jake Chial
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Jake Chial
Replied Mar 11 2023, 08:49
Quote from @Kevin Bartlett:

Hi Jake- I agree with Kirstin that there a lot of homes in the Cape that need reno's after Ian and you can definitely get a deal. There is a shortage of annual rentals if you ever thought about going that route instead of the STR route, thoughts on that?

You can always shoot me a DM too


Currently I have only looked into STR. Just looking at how prices are seems STR could be more profitable. THoughts?

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Replied Mar 11 2023, 09:41

Hi Jake - I am about to close on a STR in Panama City Beach, FL and the ROI is very profitable considering the price I paid for the property (under $500k). This area seems to be increasing with popularity within the STR market so thought I'd mention to you in case you were interested in other parts of FL. Feel free to shoot me a DM if you are interested in discussing further!

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Kevin Bartlett
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Kevin Bartlett
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Replied Mar 11 2023, 11:14
Quote from @Jake Chial:
Quote from @Kevin Bartlett:

Hi Jake- I agree with Kirstin that there a lot of homes in the Cape that need reno's after Ian and you can definitely get a deal. There is a shortage of annual rentals if you ever thought about going that route instead of the STR route, thoughts on that?

You can always shoot me a DM too


Currently I have only looked into STR. Just looking at how prices are seems STR could be more profitable. THoughts?

I think it really depends on the property and where it is, if you are going in the 1-1.3M range the STR is probably the way to go. A standard 3 bedroom I'd say do the annual in the Cape

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Napoleon DeCiutiis
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Napoleon DeCiutiis
  • Real Estate Agent
  • The Short Term Shop / Florida Emerald and Forgotten Coasts
Replied Mar 12 2023, 05:37
Quote from @Amanda Pivovaroff:

Hi Jake - I am about to close on a STR in Panama City Beach, FL and the ROI is very profitable considering the price I paid for the property (under $500k). This area seems to be increasing with popularity within the STR market so thought I'd mention to you in case you were interested in other parts of FL. Feel free to shoot me a DM if you are interested in discussing further!

@Jake Chial
I will echo Amanda here- Panama City Beach has, for ROI, one of the best bang for your buck in STR. If you get on to The Short Term Shop website, under "Blog" there is Air DnA data for all of our STR Markets note that the Luxury STR prices are taken out of the averages.) Go with the place that makes the best numbers for you. Not to make it an Eminem song, but you only have one shot on this space ball we're all on! Go get that cheddar!

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Replied Feb 24 2024, 10:00


 Typically in my experience a 6 bedroom home in my main market of clearwater/st pete area would do more than 2 3 bedrooms houses.  Typically.  This is numbers I am used to (all variables as same as possible so lets assume renovated, well stocked and furnished with a pool 5 mins from beach):

3 Bedroom = $80k average purchase price $550k

4 Bedroom = $130k average purchase price $700k

5/6 Bedroom = $180k average purchase price $850k

Hope that makes sense and helps in some way

@Andrew Steffens and how many miles max from beach? 3?

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Andrew Steffens
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Andrew Steffens
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Replied Feb 25 2024, 12:24
Quote from @John Mason:


 Typically in my experience a 6 bedroom home in my main market of clearwater/st pete area would do more than 2 3 bedrooms houses.  Typically.  This is numbers I am used to (all variables as same as possible so lets assume renovated, well stocked and furnished with a pool 5 mins from beach):

3 Bedroom = $80k average purchase price $550k

4 Bedroom = $130k average purchase price $700k

5/6 Bedroom = $180k average purchase price $850k

Hope that makes sense and helps in some way

@Andrew Steffens and how many miles max from beach? 3?


 Our rule of thumb was 2, but you can go out as far as 5.  Further you go from the beach the cheaper the property, but also the lower the occupancy/ADR.  Just have to crunch the numbers on each to figure out the return

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Replied Feb 26 2024, 04:50

Hmm when I go to https://theshorttermshop.com/?page_id=8483  which is the blog for estimated returns , does not seem to be correct

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Jeremy Jareckyj
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Jeremy Jareckyj
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Replied Feb 26 2024, 06:48

I would recommend trying to find an investor friendly agent who also potentially owns or manages properties in that area. they can give you the most accurate data.

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Glen Wiley
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Glen Wiley
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Replied Feb 26 2024, 07:10

I was just there last week for vacation and enjoyed the area. We looked into getting an STR in Cape Coral (we have one already in the Virginia Northern Neck that is performing well).

I don't think that area would be a good investment choice for STR based on what I saw there and in surrounding counties. The AirDNA data was insightful (although incomplete). The problem is that surrounding areas like Ft. Meyers do way better. I suspect it has to do with the need to cross bridges to get to good beaches - traffic was a nightmare to get anywhere. When we go back we will stay in an area closer to a good beach - so Sanibel, Captiva or Ft. Meyers.