I am an investor looking to buy my first investment property at the Cape Coral area. In my research of the area and looking at different properties in the area, there were a set of things I have come across and I was hoping to get everyone's feedback on it -
- 1.I have an option to buy build to rent new construction SFH properties in the North and North West part of Cape Coral (Zip Code 33993). As I look at the area it seems it is a little away from grocery store and other amenities. Would that be a challenge in identifying a good tenant in that area?
- 2.I have the option to purchase a duplex property in the south part of Cape Coral (zip code 33914) with assessment paid out. As a first time buyer, I am unsure of the resale value of the duplex compared to a single family. Would that be an issue (resale value of duplex compared to SFH)
I own a duplex in that zip code (SW Cape Coral) the rental market is very strong and the resale value is very strong right now. I think the NW area is not as developed and so you won't see as strong of a rental market up there. Let me know if you have any questions.
Thanks Tammy. very helpful feedback. What rent estimate should I expect for the duplex. The proforma lists 1295-1395 each side.
@Gargi Bhatia unless the unit is new I would say a safer bet is 1295-1350 if in good condition.
Hello @Gargi Bhatia
Thank You for your questions. With regards to the SFH, absolutely the location matters and certain lots will be more desirable than others. The NW isn't your only option. I often recommend working with a builder who doesn't require construction loans (just the end loan) and can provide a definitive completion date.
With regards to the duplex, being on city water and having assessments paid is great. You might just want to double-check the flood zone. Some 3/2 new construction duplexes are getting 1450-1500 per side. It really depends on the age, size and finishes. Duplexes and duplexes lots have gone up in value and are becoming less available. All the new development in the area is targeting the luxuary renter so very few "affordable" rentals are available. This means that you will almost always have a high demand.
The resale value of both will depend on a lot of factors. We can dive deeper into this offline.
Let me know if you have any additional questions. - Thanks!
Thank you Tammy for providing your input. Very helpful. Thanks Alvin for providing a detailed overview of the different options. I will connect offline.