Pittsburgh, PA · Member since 2016 · 12 posts · 0 votes
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.
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
9y
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.
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
9y
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.
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.
Rental Property Investor · Labelle, FL · Member since 2011 · 48 posts · 23 votes
9y
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!
Investor · Pueblo West, CO · Member since 2014 · 310 posts · 213 votes
9y
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.
Rental Property Investor · Cape Coral, FL · Member since 2012 · 427 posts · 186 votes
9y
@Steven Segal what kind of financing do you have access to? Feel free to PM me if you prefer. I've run into some issues with refinancing out of short term private notes etc.
Lakewood, CA · Member since 2016 · 26 posts · 4 votes
9y
Julian Kim hi Julian. I am also looking to potentially invest in this area. Looking at multi family turnkey. Did you end up investing out there? What was your experience ?
Pittsburgh, PA · Member since 2016 · 12 posts · 0 votes
9y
Hi Phillip, I have not invested in this area yet. My slight concern is if the average salary in the area can justify the higher prices that we're seeing. Another factor - it seems as if the demand for housing is partially affected by second home buyers, not all people who would want to move here permanently. Just my humble opinion - but I defer to the experts.
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.
John, how did you estimate the 22K for water/sewer connection, I'm guessing you have multiple properties, or is that the cost for a single one?
I'm looking to purchase a property that is already connected to the city water, but still on septic. According to the city, sewer lines for that zone will be implemented in 2018/2019, do you know how can I estimate the fees given that the property already paid around 4K for the water hookup?
Investor · South Bend, IN · Member since 2017 · 2 posts · 0 votes
9y
currently looking and about to purchase in the Cape Coral/fort myers area. We have analyzed and researched intensely. This will be our second rental property. Like the podcast said about 1 or two ago we are definitely hesitant but hopefully this will be just the start. 10,000 baby boomers retiring a day... they're headed south!!
Rental Property Investor · Fort Myers, FL · Member since 2017 · 7 posts · 2 votes
8y
Hi Everyone,
I wanted to introduce myself. I am a new investor. However, I am not new to the details or process/procedure for purchasing properties and many other facets of real estate as I am in the legal profession. I am located in Lee County, but open to invest in surrounding counties. I want to purchase my first property but am interested in Multifamily 3 units - 50 units.
I noticed that most of the posts on here are about wholesaling and flips. Is there anyone that is into Multifamily buy and holds? If so, I would enjoy meeting and/or speaking with you. I certainly wouldn’t mind partnering or working with an investor who does not have time to find the deals.
Thank you and I look forward to hearing from you!
Catoosa, OK · Member since 2018 · 20 posts · 5 votes
8y
I’m pretty new to the forum but an investor in Oklahoma. I was trying to message you brokers/property managers directly but the mobile app isn’t giving me an option for some reason. Basically my dad is up in age and I’m thinking about getting him in a canal front place to spend the winters in and possibly do some short term stuff the rest of the time. Or I just buy a place and do long term rentals with it and then it’s paid for when I get time to use it. I’d like to talk to some of you local guys and see what the markets really like there right now, it’s been a few years since I’ve been down.
Investor · Winter Park, FL · Member since 2016 · 69 posts · 52 votes
8y
It's 2018 and I an option to pickup a handful of properties from a retiring landlord with NW addresses and a few SE address that are 4/2 & 3/2's for around $160K/door. Thinking of pulling the trigger here. Any insight on current state of the rental market for a 3/2 and 4/2 block home in these areas would be helpful. My home market is Orlando.
Investor · Charlestown, NH · Member since 2016 · 48 posts · 15 votes
8y
@David Wolf I have been investing in cape coral for 4 years. I can tell you my PM is telling me that SFH are not renting as fast as they did a few years ago and are going for less money. For a 3/2 she is telling me that $1350.00 is tops in rent. The NW area is not the most desirable area on the cape.
Investor · Charlestown, NH · Member since 2016 · 48 posts · 15 votes
8y
@Terry Fox I was refering to a 3/2 average SQ. FT. 1600 to 1800. My first home was in the SW you will get a higher rent there. David was asking about the NW and SE area. If the numbers work I would say that the cape is a good area to invest in. If you can pick up a property that has a good cash flow buy it fast. I was out bid last week by a cash buyer. Bummer.
Investor · Ellington, CT · Member since 2012 · 60 posts · 16 votes
8y
@Jesse Hargrove Hi Jesse, I'm also a New Englander with several rentals in SW Cape Coral. I should have clarified that in my post. I wasn't just trying to be "sassy". I was just attempting to point out that our SW Cape coral rentals (between 1,333 - 1828 sq ft, some with pool, some without) are going for more than $1,350.
Investor · Charlestown, NH · Member since 2016 · 48 posts · 15 votes
8y
@Terry Fox Hello Terry, no worries. I agree with you 100% I was answering a general question. I love the Cape. I hope to retire there some day. I love New England but invest in florida. Hey we have that in common.
$160K a door sounds pretty cheap. There’s not much available anywhere in the Cape at that price point unless it’s wood frame and run down. I’d look into it if I were you.