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Short-Term & Vacation Rental Discussions

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Alex Revnew
  • Chagrin Falls, OH
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House Hacking/Vacation Home Rental in Cape Coral Florida

Alex Revnew
  • Chagrin Falls, OH
Posted May 7 2023, 23:04

Anyone familiar with the Cape Coral Florida market?  I am thinking of buying a duplex there for $500,000.  Market rent for each side is $2,000/mo. but I would think I could get more on Airbnb or as a short term rental.  I'm thinking of also living there part time in the winter.  Do these numbers make sense or are they too close?  And has anyone else done something similar?

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Michael Baum
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#1 Short-Term & Vacation Rental Discussions Contributor
  • Olympia, WA
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Michael Baum
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#1 Short-Term & Vacation Rental Discussions Contributor
  • Olympia, WA
Replied May 8 2023, 00:15

Hey @Alex Revnew, there has been a lot of activity in the Cape Coral area regarding regs. I would double check to see where they are at right now.

I think the don't allow STRs less than a week at a time.

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Yvonne Gallegos
  • Realtor
  • Fort myers
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Yvonne Gallegos
  • Realtor
  • Fort myers
Replied May 8 2023, 04:39

Hi Alex @Alex Revnew

Yes those rental estimates sound about right maybe even a little on the low side depends on condition and location in cape of the property obviously.  Short term rentals in the city of Cape Coral are supposed to be 7 day minimum. The Airbnb will do better in south or southwest cape. You could consider even a seasonal rental. Happy to connect 

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Adam Bartomeo
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  • Real Estate Broker
  • Cape Coral, FL
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Adam Bartomeo
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  • Real Estate Broker
  • Cape Coral, FL
Replied May 8 2023, 07:05

I manage several hundred units in the area. $2000 is going to be high unless you have some extra amenities - pool, canal, garage. I just bought and rented a 2/1 for duplex for $1695. We just rented a 3/2 1300 sqft SFH for $2100. If you are going to try and use them as a vacation rental (I do not advise doing this) then you will either need a pool or be in the heart of Downtown Cape Coral.

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Todd Goedeke
  • Contractor
  • Sheboygan, WI
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Todd Goedeke
  • Contractor
  • Sheboygan, WI
Replied May 8 2023, 08:33

@Yvonne Gallegos do people actually vacation in Cape Coral in summer months ,June-Sept.? Or is the snowbird season from November thru March considered the high season of greatest demand?

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Todd Goedeke
  • Contractor
  • Sheboygan, WI
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Todd Goedeke
  • Contractor
  • Sheboygan, WI
Replied May 8 2023, 08:49

@Adam Bartomeo why do you not recommend STVR for Cape Coral if it’s a duplex with a 20 by 40’ pool? Is there no high demand season from vacationers? Is it all snowbirds and snowbird rates from Nov thru March?

Of the units you manage how many had roof damage from the hurricane?

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Adam Bartomeo
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  • Real Estate Broker
  • Cape Coral, FL
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Adam Bartomeo
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  • Real Estate Broker
  • Cape Coral, FL
Replied May 8 2023, 10:04

@Todd Goedeke All of the investors I work with are getting out of STRs. It is currently way oversaturated. I sold mine a month ago. Due to saturation and cancelations from guests after the storm the seasonal revenue was 1/2 of the normal revenue. The rest of the year is looking much worse. It might come back next season but its a gamble. We are currently converting 3 STR's into annuals for investors.

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Todd Goedeke
  • Contractor
  • Sheboygan, WI
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Todd Goedeke
  • Contractor
  • Sheboygan, WI
Replied May 8 2023, 14:11

@Adam Bartomeo did you do any of your own marketing to get direct reservations , avoiding OTAs such as Airbnb and Vrbo? Did you do anything to differentiate your property from others ?

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Andrew Steffens
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#3 Short-Term & Vacation Rental Discussions Contributor
  • Tampa, FL
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Andrew Steffens
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#3 Short-Term & Vacation Rental Discussions Contributor
  • Tampa, FL
Replied May 8 2023, 16:56

Our Naples properties have been down since Ian as well :(

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Michael Diossa
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  • Rhode island
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Michael Diossa
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  • Rhode island
Replied May 8 2023, 17:31

The investors with whom I collaborate have made the decision to divest from short-term rentals (STRs) as a result of the current market oversaturation. Some experienced a massive drop in seasonal revenue due to cancellations by guests in the aftermath of a storm. The upcoming seasons do not hold much promise either, thus rendering it a speculative venture to bank on its resurgence next year. Consequently, we are presently in the process of transitioning three STRs into annual rentals for our investors.

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Adam Bartomeo
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  • Real Estate Broker
  • Cape Coral, FL
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Adam Bartomeo
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  • Real Estate Broker
  • Cape Coral, FL
Replied May 9 2023, 05:05

@Todd Goedeke Yes, we did. It is extremely tough to break away from the major sites and gain traction without them. Outside marketing is more of a compliment to using those sites. Understanding the major sites and how they work is your best option.

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Bob Stevens
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  • Real Estate Consultant
  • Cleveland
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Bob Stevens
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  • Real Estate Consultant
  • Cleveland
Replied May 9 2023, 05:15
Quote from @Alex Revnew:

Anyone familiar with the Cape Coral Florida market?  I am thinking of buying a duplex there for $500,000.  Market rent for each side is $2,000/mo. but I would think I could get more on Airbnb or as a short term rental.  I'm thinking of also living there part time in the winter.  Do these numbers make sense or are they too close?  And has anyone else done something similar?

NO !! terrible numbers. I know the market there and most of FL very well. Fl is way overpriced, and the Cape is not a safe bet at this point. My client owns about 75 mill in RE there even he said, NO do not buy here now. 1ST the number do not make sense to me, Not even 1% (all my personals are 2% ++ never less then 15% net cap on cash purchases) where is your ROI,? Maybe 4% net If that. Heck, you live 1 hour away from (My office is in Beechwood ) the best rental market in the country for the last 10 years. I do all my business there. Why go 2 1/2 hours away and maybe get 3% ? You can get 10% or better net caps and be in your own backyard.

All the best 

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Zach Edelman
  • Lender
  • Austin, TX
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Zach Edelman
  • Lender
  • Austin, TX
Replied May 9 2023, 05:36

Just did a loan on a turnkey STR acquisition in Cape Coral for an experienced STR investor (currently has four under his belt, three of which with over a year of successful booking history). From an UW standpoint, with using Air DNA projections, the deal looked solid (cashflowed at a 1.36x DSCR with 100% Air DNA projections).

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Kevin Bartlett
  • Realtor
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Kevin Bartlett
  • Realtor
Replied May 9 2023, 06:40

Hey Alex, Winter is a top rental time for Airbnb's, STR's if you are planning on living there.

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Raymond J. Rodrigues
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  • Lender
  • Miami, FL
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Raymond J. Rodrigues
Lender
Pro Member
  • Lender
  • Miami, FL
Replied May 10 2023, 04:16

Hi @Alex Revnew, I recommend reaching out to @Kevin Bartlett. He is the expert in the Southwest FL area that you’re looking to buy. I hope this recommendation helps you and any others!

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