Cape Coral New Construction

[Michael Simmonds]

Hey BP Family,

 I know many of you have pursued new construction in Cape Coral through Rent to Retirement. How was your overall experience? It has been over a year since we closed and we are still awaiting final approval. After the hurricane, we were told that the home would be completed by early summer 2023, but now it is May and we are still waiting on approval. We are now being told that there are delays due to septic approval and our 4 bedroom/2 bath plan has to be changed to 3 bedrooms plus a den. Not sure what the correlation is between the septic delay and the bedroom situation, but this certainly is not a pleasant surprise. 

Have any of you experienced this and if so, what was the outcome? We are waiting to speak with someone from Rent to Retirement to figure this out, but wanted to see if anyone else has had a similar experience.

Additionally, we are being told that changing from a 4 bedroom to a 3 bed plus a den will have no affect on the value of the home or the rental income. We went into this investment and ran our numbers based on a 4 bed/2 bath. We are doing our own research, but hoping to get some input from local investors/realtors in Cape Coral to verify if this information is accurate. 

Thank you in advance!

[Stetson Miller]

Hi @Michael Simmonds,

To reiterate what @Chris Harper has said above, your timeline is right on track for what we're seeing in this area right now. He's also correct in that the septic systems are rated by the maximum total occupancy of the home (they don't count dens towards that occupancy). This is how you can keep the same system, same home layout, and just make a minor change to how the extra bedroom is filed with the city

Although not a pleasant surprise like you mentioned, luckily this is a very minor issue in reality and everything they're telling you is accurate. The 4 bed vs 3+den designation won't have any effect on the home's value, or the rental income. Tenants don't see any difference between a den and a bedroom as long as it's a functional living space, so you won't run into any issues there

It's unlikely that you would have to pump out the system more than normal with standard usage, but one thing I would recommend is to always ensure your septic alarm is fully operational. If the does fill quicker than the recommended 3-5 year pump out schedule, this alarm will let you know and prevent a backup into the home. Always be sure to educate your tenants on what this alarm is, and how to tell if it's going off so they can notify you immediately