Hi!

I'm a first time investor looking to buy out of state for cash flow. I recently started looking into Cape Coral market because there's a lot of new development with a decent median rent price. The population has also been increasing in the past few years, which is another plus for me. I'm interested in the market because it seems like it will be less of a hassle to learn how to manage for a newcomer like me, even though my cash flow may not be as high as other markets.

My only concern is that it looks like a buyer's market. I read somewhere that around 70% of the population are home buyers, so I'm concerned that vacancy rates will be very high. Does anyone have insight on how difficult it is to find tenants in this area? Would you recommend this area for someone who is investing out of state or should I focus on higher cashflow markets?

@Kevin Wang

Hi Kevin,

It's actually a seller's market in Cape Coral at the moment, with only about two-month's supply of inventory. Builders are very active and I foresee a lot of new construction homes coming to market to help fill the demand. I spoke to a property manager I know and she said she hasn't had any problem finding good tenants for her available units, whether SFR's or duplexes, indicating that demand for rentals is still strong here.

I hope that helps!

@Kevin Wang

Hi Kevin! Local property manager here and I have no shortage of well qualified tenants to place in properties.

Hi @Kevin Wang ,

Here's an article that shows some interesting numbers regarding Cape Coral being one of the top performing zip codes in Florida:

https://www.biggerpockets.com/...

Any type of property purchase in the city right now is something I would consider a good buy. Like you said initially, the cash flow might not be as high, but for the growing list of other great benefits that the city has to offer, in the long run, the loss of initial cash flow will be well accounted for in future growth of all other considerable aspects. 

Let me know if you have any other questions and I would be happy to help!

Originally posted by @Kevin Wang :

Hi!

I'm a first time investor looking to buy out of state for cash flow. I recently started looking into Cape Coral market because there's a lot of new development with a decent median rent price. The population has also been increasing in the past few years, which is another plus for me. I'm interested in the market because it seems like it will be less of a hassle to learn how to manage for a newcomer like me, even though my cash flow may not be as high as other markets.

My only concern is that it looks like a buyer's market. I read somewhere that around 70% of the population are home buyers, so I'm concerned that vacancy rates will be very high. Does anyone have insight on how difficult it is to find tenants in this area? Would you recommend this area for someone who is investing out of state or should I focus on higher cashflow markets?

 It is a buyers market right now. Vacancy rates are low in Columbus, Ohio.