First time with new construction: Cape Coral, FL

[Don M.]

Hey guys,
This post is mainly just to share where I'm at with this process, provide opportunities for myself to network with others in the area, and so I can periodically update.  I have connected with several members doing new construction or with boots on the ground in Cape Coral, so thanks to all of you that have discussed and answered questions from me so far.
Here's where I'm at:
-Connected with Rent to Retirement in November/December 2021 to discuss the area and opportunity.
-Closed on build contract January 2022 on a 4/3 (Build price itself is 246k).
-Closed on Freshwater canal Lot February 2022. (39k with closing costs).
-(All in construction+lot cost is 285k before loan and closing costs).
-Sent Deposit to builder February 2022. (13.5k) 
-Surveys, Site Plan, Septic Design approval initiated: February 2022
-Completed Survey/Design Package completed and sent to city of Cape Coral: June 2022
-As of August 2022, Permits are still under review by city.  Most submissions are under "Approved" status, but permit not formally issued.
-Lender currently has an estimated valuation of 410k for the property.


The hope is to buy and hold, LTR.  Current projected rent: ~$2450/mo

Needless to say, it has been a very interesting time to build.  We are excited, at times frustrated, and have a healthy level of anxiety, but all of those elements were expected from the start.

I'll try to keep this thread updated, as it has always been helpful for me to read others' experiences.

-Don

[Zach Lemaster]

@Don M.

Thanks for sharing the details of your project!  Please keep us all updated with progress.  All normal emotions for going through the tedious construction process.  I'm right there with you.  Hopefully things continue to progress, and you come out on top with a huge equity position/high cash flow when it's all completed.  We are seeing about 50/50 split of people holding as rentals vs selling.  The avg equity position upon completion is about $150K with avg rent of $2,500 leasing in 3 weeks or less post CO.  Hopefully this gives you some light at the end of the tunnel.  Feel free to reach out at any point with any questions, or just to get a sense of how the market is doing overall.