I want to get away from high HOA in Orlando and buy from Tampa area down to Cape Coral. We live in Venice. Right now it looks like I could buy old over priced small units or a new duplex and get the same return on both. One person advised me to buy smaller units . Not sure which way to go. I am hoping this post will find someone in this geographic area who has some real experience to share. Thank you
Updated 4 months ago
One concern is the quality of tenants I could expect under 1000 a month as compared to those above and average length of stay
I have found that duplexes seem to consistently demand more money to purchase than a comparable SFH. When I was getting started I bought duplexes for the thought that if one side was empty the other could pay the rent. With enough properties in your portfolio you will graduate from that philosophy and will recognize that you can fill your single family homes in a matter of days. We have never had an advertised unit not be capable of being filled in less than a week. So my suggestion is that the SFH's will be more plentiful and ultimately less expensive when you find the right ones (read: fit your criteria for cost and income). Just be patient and buy smart (figure out the going dollars per square foot and aim below that.)
In central Florida the average selling price of class A properties is probably $135/sf. We are typically buying our C class rentals at about $70-75/sf... and on a great day $50-60/sf. But the comparable duplex is almost always $80-87/sf
Hope it helps!
Hi David, I have a couple of duplex in Cape Coral. They’ve been solid investments. However, we bought them at a discount because we bought them together and in cash. They are hard to come by where they pencil out. I think there are more opportunities in the surrounding towns.
@Tammy Skeath do you know an investor friendly agent in the cape coral or surrounding areas that can help me in finding small multi-families?
@Bernadeau C. no unfortunately... I’ve been looking as well.
Okay thank you @Tammy Skeath
@Bernadeau C. if I find one I’ll let you know. Please do the same for me! :)
@Tammy Skeath will do!
Have you looked into Lakeland? A tad farther than Tampa for you, but it benefits from been right in the middle of Orlando and Tampa. Cash flow has been great, never had to deal with vacancies longer than 1 week as the rental demand is strong, and a diverse pool of tenants.
Hi @David Siders ,
You're absolutely correct in the fact that properties built in the early 2000's up to around 2015 are seeing roughly the same gross rental incomes as new construction properties in the area, with huge price disparities. Typically, in Cape Coral, most of these older duplexes are going to have close to the same square footage per unit as the new construction properties, about 1,150-300 square feet for a 3/2. These are the unit types that are renting for roughly the same as the new construction properties. Anything much smaller than than and you're looking at a reduced rent and rental demand, and lower quality tenant applications, but not a major reduction in price. Therefore, those 6/4 duplexes, 1,150-300 square feet per side, with a 1 or 2 car garage, built in the 2000-2015 range, are going to be your best income generating properties when trying to balance increased potential returns and placing higher quality tenants. 4/4 and 4/2 duplexes can be profitable as well, but ones that can still account for similar returns are harder to come by.
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