Looking to invest in a Duplex in Lehigh Acres, Fl.

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Looking to invest in a Duplex in Lehigh Acres, Fl.

Peter Sawyer
Investor · CA · Member since 2021 · 5 posts · 0 votes

Hi everyone, I am new to Bigger Pockets. I live in California but looking to invest in Lehigh Acres with a new build Duplex. I am currently working with Hollistic REI out of Jacksonville. Does anyone have any experience with this company. The duplex is located at 306 Urbana St. I've never been to Florida so any information about this area would be much appreciated. Thank you in advance.

Peter

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  • Michael Byrd
    Real Estate Agent · Fort Myers, FL · Member since 2016 · 5 posts · 1 vote
    5y

    Hi Peter,

    I can answer any questions you may have about the area and the process. As far as the area goes its one of the last affordable places to build and get a great lot with a home. Depending on the size duplex you get market rental rates are $1000-$1250 in Lehigh Acres. 

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  • Michael Byrd
    Real Estate Agent · Fort Myers, FL · Member since 2016 · 5 posts · 1 vote
    5y

    Also as far as the builder goes, have not heard of them. There are a ton of builders right now in South Florida as that is where the profit is at. Most the lots are $15,0000 - $50k. The closer you are to Fort Myers the higher the lot price. Rental rates are not much different for duplex units. Average build time right now is 6-8 months.Your unit will be on Septic and Well.  I have a duplex about to go up for sale in Fort Myers and currently have one for sale in Cape Coral that is owner occupied on side. 

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  • Stetson MillerBusiness Member
    Real Estate Broker · Fort Myers, FL · Member since 2019 · 576 posts · 423 votes
    5y

    Hi @Peter Sawyer,

    Just out of curiosity, did you find Lehigh Acres to invest in first, or did this company suggest it? Kind of interesting that a company out of Jacksonville has any interest in a location that far away, but obviously it's a growing market! I don't have any experience with that company specifically, but assuming it is a 'build to rent' type program, I have yet to hear of anyone who has a completely satisfactory experience purchasing through these.

    Regarding the area that property is in specifically, it's going to be a very rural area, currently with low rental demand and a bit higher crime rates compared to the surrounding area. Out of all of Lehigh, this is likely one of the only places that I would typically recommend avoiding. If high rental demand and stable cash flow is what you're looking for, I would focus on the Southwest side near Gateway. If it's high appreciation potential and decent cash flow that you're after, the far East end of SR-82 is where you want to look.

    Let me know if you're interested in talking more, I would be happy to further discuss the area, pros/cons, and current market availability!

    [email protected]850-259-2910
    Stetson Miller Realtor545 Reviews
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  • Julio GonzalezPro Member
    Specialist · West Palm Beach, FL · Member since 2008 · 4k+ posts · 1k+ votes
    5y

    You are in the right place, Peter! Welcome aboard and best of luck investing! 

    561-253-6640
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  • Peter Davis
    Real Estate Broker · Cape Coral, FL · Member since 2014 · 382 posts · 300 votes
    5y

    @Peter Sawyer

    Hi Peter, I lived in CA for 15 years and still have an apartment building in Van Nuys. I'm looking to 1031 exchange that into an investment over here in Florida. Less governmental involvement, restrictions, fees, red tape, etc. here in SW Florida. 

    I too am a little skeptical of the rent-to-own companies that I've looked into for fellow investors. Their investment assumptions/opex typically are a little rosier than reality in my opinion. Confirm their numbers are realistic by reaching out to other investors or brokers in the area; do your homework. 

    Good luck!

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  • Peter Sawyer
    OP
    Investor · CA · Member since 2021 · 5 posts · 0 votes
    5y

    Hi @Michael Byrd, thank you for the information. That is very useful for me. The builder is not Hollistic REI it is Southern Impression Homes LLC.

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  • Peter Sawyer
    OP
    Investor · CA · Member since 2021 · 5 posts · 0 votes
    5y

    @Stetson Miller, Lehigh Acres was one of the areas that they had properties for sale. They also had some in Jacksonville, Port Charlotte, and Ocala. Hollistic REI was referred to me by Real Wealth Network, based here in California. They work with investors and connect investors to companies like Hollistic REI for investment purposes. Can you explain further what you meant with 'build to rent' type program. Also where can I get the information about higher crimes and low rental demand in the area. I did see the area on google maps and saw that the roads were not paved. I will definitely continue to do my due diligence and get as much information as I can about Florida in general.

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  • Peter Sawyer
    OP
    Investor · CA · Member since 2021 · 5 posts · 0 votes
    5y

    @Julio 

    @Julio Gonzalez, thank you!!!

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  • Peter Sawyer
    OP
    Investor · CA · Member since 2021 · 5 posts · 0 votes
    5y

    @Peter Davis, I also have a property here in California that I'm looking to do a 1031 exchange. I am still learning how to do that, but yes I am trying to do my homework before diving in. How would you recommend reaching out to other investors or brokers in the area? I mean what questions should I be asking to get a better grasp of the numbers. Honestly, this is my first time trying to invest out of California and I have to admit the numbers are sometimes overwhelming and confusing to me. The ROI, cash on cash, and all of the other numbers on a Pro Forma. It's all Greek to me at this point.

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  • Stetson MillerBusiness Member
    Real Estate Broker · Fort Myers, FL · Member since 2019 · 576 posts · 423 votes
    5y

    @Peter Sawyer There are multiple build to rent programs popping up in the area, as it's very conducive for new build investments right now. These programs often offer their own lenders, managers, builders, etc, most of which range from poor at their jobs, to completely shady. Most of the time, to purchase their builds, you have no choice but to use their recommended vendors, setting you up for failure from the start.

    Crime maps can by found on multiple websites, NeighborhoodScout.com is a common one. Like you said, many roads in that area of Lehigh are unpaved or very run-down, and I personally don't see that changing in the near future.

    I would definitely be happy to further discuss numbers, decent vendors, and current inventory with you for our market, just let me know!

    [email protected]850-259-2910
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  • Peter Davis
    Real Estate Broker · Cape Coral, FL · Member since 2014 · 382 posts · 300 votes
    5y

    @Peter Sawyer

    If you see an expense, for example, that looks high you can run it by people here on the BP forums and ask for a local opinion; I'm always happy to help. Or send the proforma to me or others for a second opinion. 

    @Peter Sawyer

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  • Josh Numa
    Member since 2019 · 3 posts · 0 votes
    2y

    Any update on the project?

    Land is still good price but what about building cost and minimum lot size. 

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