Great cash flow here

[Jose Alejandro Hernandez]

Watched a recent bigger pockets video about where this area of the country was considered one of the best for cash flow opportunities. I’m wondering if anyone can give some insight into what the challenges of investing in rental property in Cape Coral would be? I’m from El Paso, TX and have only spent a brief amount of time in Miami, FL.

[Adam Bartomeo]

Florida in general is an appreciation market. In the 10 years that I have lived in Cape Coral the houses have increased in value by over 300%. We bought our first house in CC in 2012 for $190k and it can now be sold for $600k+. Rents have doubled. So, there is a gap in your return. We still have a very healthy rental market that has risen drastically in the last 2 years. It will be tough to find a property that cashflows with only putting down 20% 25%, you may have to put down 30% - 35%.

[Adam Bartomeo]

Florida in general is an appreciation market. In the 10 years that I have lived in Cape Coral the houses have increased in value by over 300%. We bought our first house in CC in 2012 for $190k and it can now be sold for $600k+. Rents have doubled. So, there is a gap in your return. We still have a very healthy rental market that has risen drastically in the last 2 years. It will be tough to find a property that cashflows with only putting down 20% 25%, you may have to put down 30% - 35%.

[Jake Chial]

Im finding it very hard to get a property in cape coral that with create a good COC return. The best im finding are in the 10% range with 20-25% down.

[Edward Dean]

Take insurance into consideration and vet whichever plan/company you go with carefully. A quick google shows the average elevation of Cape Coral is about 3ft above sea level. I'm sure there are higher elevation or less risky parts so just make sure to look at flood maps, storm surge areas, etc., in your due diligence phase so you are not plunking money down on a property/area that exposes you to an outsized insurance risk due to flooding and hurricanes. Or at least try to price that in the best you can.

[Peter Davis]

I'm seeing downward pressure on rental rates in Cape Coral as more rental homes come to market, Econ 101. Anecdotally, a local PM I spoke to recently had a new construction home listed for rent at $2,500 with no qualified bites, dropped it to $2,400, then again to $2,300. And everywhere you look there are 100+ unit apartment buildings going up too. That said, one bright spot for landlords is the projected growth for the area and higher interest rates are forcing many would-be buyers to remain renters. Buy it right and have a cushion to ride out the slow times.