I'm a first time rental investor. I was wondering if the Cape Coral-Fort Myers area would be a good investment. I'm from PA and would love to invest in this area.
Are there any good turn key companies out there?
Would you recommend some other course such as renovating from a short sale or foreclosure?
Are the rent-to-value ratio relatively good? Looking for something at least a $300 cash flow from a $100,000 value property.
Maybe there's a better area in FL for this?
I live in Naples but invest primarily in Cape Coral. The Ft Myers/Cape Coral area had the highest % rent increase last year. I believe it was over 26%. Demand is strong though I do believe we now have some moderate softening of rents. If you want maximum cash flow you really need to find a deal rather than buying turn key units. Those are priced at retail. You MUST make your money when you buy. This also gives some insulation when the market cycles. Between Ft Myers or the Cape Coral area, I personally prefer the cape. Others may prefer Ft Myers. If you do buy in the cape, try to purchase where water and sewer are in the have been paid in full or paid down quite a bit. I expect to get hit with at least two 22K bills next year for water/sewer for properties that are on well and the city is bringing in water and sewer. There is no opt-out ...everyone MUST get hooked up when they bring them in.
If you ever need competitive financing for flips or rentals, just do my 1-min application. I have very competitive terms.
Is a 10% cap rate still doable in this area?
I have also read that Cape Coral has one of the highest vacancy rates. Is that still true?
I have no idea where you got that info. People are falling over themselves for places to live. We are short at least 12K units minimum. Every time I list a place for lease I have several apps. I just sent out letters over the last week trying to find more SFR. I hope to build a small apt complex there within the next year or two.
10% cap is possible..but you have to wait for the right deal.
Be careful to NOT fall for the hype!
SWFL individual income is not very high. While John is correct, there is a shortage of housing in SWFL...it's more of a shortage of "affordable" housing though!
There are plenty of $300k+ homes for sale...but very few in the area can afford a $2k+ a month mortgage. Avg household income for 2015 was $47k.
Current avg household income vs avg rent is right at the 36%+ mark($1500).
Are there deals to be found...sure, but the area investor involvement is very high as well!
@Warren Ifergane where can I find your application? I am currently looking at duplexes in Lehigh
Cape Coral/Fort Myers was a great place to buy in 2010-2012. I picked up a 3 bed/2 bath/2 car garage for 95K in San Carlos Park. Now it's worth about 225K. Rents for $1700/month. Mortgage is $665/month, including $42/month of PMI.
I'm not sure if I would buy my current house at 225K and try to rent for $1700/month.
If you are ever looking for financing in SWFL Florida. This is where I invest and I have good access. Good luck.