The Future of SW FL Real Estate As An Investment

9 Replies

I just attended a program for the agents with NextHome Advisors on Friday. We had several speakers including speakers from other parts of FL. One is a well known expert who expressed their view that our market, in their opinion, will continue to shine for the next few years. Another speak optimistically stated they expect SW FL population to double within less than ten years. We are seeing huge growth. Most of this is coming from the northeast where people want to escape the harsh winters and high property taxes. Looking around in SW FL there are lots of HUGE apartment complexes going up, new strip centers, and other housing. Of note are the senior care facilities as well. Looking at the numbers, I find some quite surprising. One of the highest rated new apartment complexes in Naples charges about $1550 for a one bedroom unit and they are getting it. I recall seeing them being built, Now their parking lots are full and I suspect vacancy is minimal. Yup--$1550 a MONTH for a one bedroom. Rents in Ft Myers and Cape Coral are not quite that strong but approaching higher end numbers. With the anticipated growth, etc I believe we are going to be in a great market for investors for several years. I personally will continue to buy when I find what I consider a great deal. It is not too late to come to the party, but you cannot pay FMV with hopes of appreciation, etc. I believe we will have some sustained appreciation, but the good old days are long gone where you could buy and your property would quadruple in 3-5 years. Regardless, you may well see 6% or so per year. Couple that with buying under market, strong job growth, strong influx of new residents, and a strong rental market and I believe the future looks pretty bright for the area. Remember, markets WILL cycle, but having that in mind, buying right, and taking smart calculated moves will help investors weather any storms that will come..and then go.

BTW----average sales prices are about 95% of listing price and about 1/2 of local sales are all cash. 

Thanks for the info John that is good news for my wife and I as we plan on moving back to Naples in about 2 months. We are currently looking for a duplex in the Naples/Bonita area but need a realtor who is investor friendly. Are you someone who can help us find what we seek? Please let me know, thank you.

Deals are few and far between. You may find your best deal by doing marketing on your own.

Originally posted by @Frank Macias :

Great advice, thanks John!

If you want an agent in the Cape I can refer a good honest one. I don't know a lot of agents in Naples. I work primarily as an investor in SFR as well as HML.

Thanks for the reply John. We are looking to buy our first rental property in Naples/Bonita area but properties thereafter we will be considering Ft Myers/Cape Coral area. We aren't ready to buy in the Cape as of yet but when we are I will reach out to you. Thank you!

Originally posted by @Frank Macias :

Thanks for the reply John. We are looking to buy our first rental property in Naples/Bonita area but properties thereafter we will be considering Ft Myers/Cape Coral area. We aren't ready to buy in the Cape as of yet but when we are I will reach out to you. Thank you!

 Generally speaking you can get a lot more for your money in Lee county. Personally, I prefer the cape. It is very popular, growing, has good rated schools, and relatively low crime. Further south in Bonita or Naples the prices are generally higher and returns are smaller. I live in Naples and love the area, but concentrate investing in the Cape. My last deal there was a home run picked up for under 150K. I will take those all day long:)

Hi John, 

I currently have a duplex in Bokeelia and am looking to extend my area to the Cape or Punta Gorda. I see what you are saying about the Cape, do you concentrate on SFH? In your experience, would a duplex/triplex do as well as SFH in either place? My preferred range is the B neighborhoods. Your thoughts?

Hi @Nancy Huffaker  

You would have quite a bit more options for SFH in the Cape where duplexes and triplex's are not so common in the Cape.

There are a lot of great options in the Cape for primary residences or investment properties. As for fix n flip, you would have to be a lot more selective on the properties and most will have to have a creative renovation to create something unique.

Would love to discuss your options if you have some time, let me know, thanks!

Thanks for the head's up, Thomas. I will be back in the area (currently in Mumbai) in July. Trying to narrow down a preferred area. Also like Punta Gorda and Bradenton. Will stay in touch about possibilities in the greater area.

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