Thoughts on rental property in the 33903 area

Cape Coral, Florida
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Thoughts on rental property in the 33903 area

RebeccA CostaPro Member
Member since 2025 · 14 posts · 5 votes

I am new to this but noticed prices are coming down.. Looking at a few smaller properties as my first investment..

Thoughts on this , will prices continue to drop?

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Doug Smith
Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
1y

Hey Rebecca, I'm up in Tampa here...and I've been doing this a very long time. I've seen several crashes and that area (SW FL) seems very prone to big drops. It was really, really bad in that area in the 2007-2008 crash. I think a lot of that had to do with getting hit so bad in 2004 and then again Hurricane Wilma in 2005. The severe damage meant they had to bring in drywall from China...and we know what happened then. Prices in that area really tanked during that last big crash. I always hate to see people "overleverage" by borrowing too much against the value of the property, but I would really watch doing that in SW FL. Just my 2 cents from lending there for many, many years. 

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  • Doug Smith
    Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
    1y

    Hey Rebecca, I'm up in Tampa here...and I've been doing this a very long time. I've seen several crashes and that area (SW FL) seems very prone to big drops. It was really, really bad in that area in the 2007-2008 crash. I think a lot of that had to do with getting hit so bad in 2004 and then again Hurricane Wilma in 2005. The severe damage meant they had to bring in drywall from China...and we know what happened then. Prices in that area really tanked during that last big crash. I always hate to see people "overleverage" by borrowing too much against the value of the property, but I would really watch doing that in SW FL. Just my 2 cents from lending there for many, many years. 

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    • RebeccA CostaPro Member
      OP
      Member since 2025 · 14 posts · 5 votes
      1y

      @Doug Smith thank you for the input. I live in MA and things are so high here. I am unable to invest in this state. We bought our vk home during Covid in North Fort Myers and it's increased in value , even after Ian. Are you seeing a big drop right now?

      0Reply
  • J CastroBusiness Member
    Lender · Florida · Member since 2025 · 673 posts · 240 votes
    1y

    Hi @RebeccA Costa welcome to BP.

    Investing in rental property in the Cape Coral-Fort Myers metropolitan area (33903) requires careful consideration of the local market dynamics. While the area offers potential benefits like strong rental demand and a business-friendly environment, the elevated vacancy rates and fluctuating rental prices warrant thorough due diligence and a well-defined investment strategy.

    Fort Myers experiences steady population growth, leading to a consistent demand for rental housing. But like any investment opportunity you also have your challenges and risks, high rental vacancy rate in the wider Fort Myers area suggests potential difficulty in securing tenants and consistent rental income.

     The area is currently a buyer's market, meaning lower prices and longer time on the market for homes. This could be advantageous for investors seeking to acquire properties at a lower cost. While potentially beneficial for acquisitions, a buyer's market might also signify a slower rate of property value appreciation. 

    As an investors you should focus on properties with desirable features, conduct comprehensive market analysis, and consider utilizing professional property management services to maximize your chances of success.

    JCREIG Capital Funding
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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    1y

    @RebeccA Costa pay attention to Days On Market (DOM) for both sales and rentals.

    If you can find graphs of these for the last 12 months, you'll better understand the current market trends.

    [email protected]248-209-6824
    Logical Property Management4.9451 Reviews
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  • Michael McVetyBusiness Member
    Fort Myers, FL · Member since 2024 · 45 posts · 20 votes
    1y
    Quote from @RebeccA Costa:

    I am new to this but noticed prices are coming down.. Looking at a few smaller properties as my first investment..

    Thoughts on this , will prices continue to drop?


    Hi Rebecca.

    I can help you out in several ways.  First, if you like, you can call me and I can give you some advice on the area and what we are seeing.  I have been doing property management exclusively for 25 years in Fort Myers.  Second, I do a quarterly rental analysis for our area (Cape Coral, Fort Myers, Port Charlotte, Lehigh Acres, Bonita Springs and Naples) and a lot of our new clients really liked the video which is in our blog area of our website.

    It depends on which type of property you are investing in as to how long the rents will keep sliding.  But yes, the rent (as well as sales) prices will continue to slide more.  Call me if you like and good luck. 

    Michael 

    [email protected]239-939-1233
    Red Fortress Property Management Co.4.2329 Reviews
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    • RebeccA CostaPro Member
      OP
      Member since 2025 · 14 posts · 5 votes
      1y
      Quote from @Michael McVety:
      Quote from @RebeccA Costa:

      I am new to this but noticed prices are coming down.. Looking at a few smaller properties as my first investment..

      Thoughts on this , will prices continue to drop?


      Hi Rebecca.

      I can help you out in several ways.  First, if you like, you can call me and I can give you some advice on the area and what we are seeing.  I have been doing property management exclusively for 25 years in Fort Myers.  Second, I do a quarterly rental analysis for our area (Cape Coral, Fort Myers, Port Charlotte, Lehigh Acres, Bonita Springs and Naples) and a lot of our new clients really liked the video which is in our blog area of our website.

      It depends on which type of property you are investing in as to how long the rents will keep sliding.  But yes, the rent (as well as sales) prices will continue to slide more.  Call me if you like and good luck. 

      Michael 


       Do you suggest ST or LT rentals for this area?

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  • Todd AndersonPro Member
    Real Estate Agent · Cape Coral, FL · Member since 2023 · 392 posts · 175 votes
    1y

    @RebeccA Costa,

    Welcome to the BP community.

    The question that you ask requires the use of a crystal ball and mine is still fuzzy, BUT

    I have been working with investors in this area for a while now.  We, as many areas throughout the country have certainly gone through and are in a correction.  It is as others have said changed to a buyers market.  Much of that was due to builders continuing when the market slowed.         

    With that being said, this brings opportunity. We are seeing if houses are priced right they are moving. And with new construction, I am finding many of the builders that I'm working with are offering fantastic incentives to move their properties.  We also have seen rent softening for a while now because of the increased inventory.  With the continued absorption this should end soon as well.   

    I would be happy to talk with you more about this.  Do your research and if your strategy is to hold for more than 5 years this could be a very good area.  

    Best of luck

    [email protected]651-492-5652
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  • Adam BartomeoBusiness Member
    Real Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
    1y

    Personally, I would only invest in the area if it were a killer deal. I own one in that zip. North Ft Myers has a stigma attached to it. A lot of buyers and renters avoid NFM due to that stigma. It makes renting and selling more difficult.

    Currently, I am buying as many houses as I can that make sense, in Lee County. I have bought 4 in the last two months. I believe that we are near the bottom of the market here in SWFL. I have started my off-market campaign again which is allowing me to buy properties well below market. I have had to start passing some on to other investors.

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  • RebeccA CostaPro Member
    OP
    Member since 2025 · 14 posts · 5 votes
    1y

    The reason I like North Fort Myers is bec taxes are half of what Cape Coral is and we are right on the line.

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  • Devin Conley
    San Diego · Member since 2024 · 44 posts · 20 votes
    1y

    Hey @RebeccA Costa sharing a couple charts on market activity for the area in case it is helpful!

    Absorption rates are down everywhere, but seems especially depressed in the 33903/Cape Coral area

    Similarly days on market is up, definitely some hesitancy on the buy side.

    Prices have cooled way off since 2022

    But also importantly, the area is growing (% change since 2010)

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  • RebeccA CostaPro Member
    OP
    Member since 2025 · 14 posts · 5 votes
    1y

    Thank you so much!

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  • Michael McVetyBusiness Member
    Fort Myers, FL · Member since 2024 · 45 posts · 20 votes
    1y

    If you or your family/friends do not want to spend part of the year down here at the property,  then I would recommend LT despite the rental market surplus.  If you like, prior to buying, contact me and we will let you know what you should rent the property for to make sure the investment is right for you.

    [email protected]239-939-1233
    Red Fortress Property Management Co.4.2329 Reviews
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    • RebeccA CostaPro Member
      OP
      Member since 2025 · 14 posts · 5 votes
      1y

      @Michael McVety we barely get to our current vk home in FL. We both work too much! This would be just as an investment. 

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  • Michael McVetyBusiness Member
    Fort Myers, FL · Member since 2024 · 45 posts · 20 votes
    1y

    You are not the only one that often do not have the time to vacation at your home!

    I would do annual and let me know if I can help you further with any deal you are looking into.

    [email protected]239-939-1233
    Red Fortress Property Management Co.4.2329 Reviews
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