Cape Coral-Fort Myers Rental Properties

[Julian K.]

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?

Many thanks!

Julian

[John Thedford]

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.