RTR New Builds Cape Coral

[Bhavya Shah]

Hi there, 

I know there quite a few posts on the experience with RTR but has anyone here got their Cape Coral property completely built out and rented? If so, how long did it take for the build to complete and rent it out beyond that? The current build time is approximately 12-18 months. How is the quality of the build that was completed ? Are there any unsaid learnings along the way that you would share with people contemplating on going the route of new builds?

[Trevor Fleck]

Hi @Bhavya Shah, I was one of the first investors in Cape Coral through Rent to Retirement. I identified my first property in February of last year and officially closed in April. It will be finished next month. So 10 months total. The builder shares pictures along the way and I've also had both my parents and a contractor friend go through the house and they were very pleased by the quality of the build. I'll actually be going down there next week to inspect myself and then likely back out when it's done in February for a final walkthrough. 

When I first signed the contract in April, I was told my property would rent for around $1,850/month. Now that it's nearly complete, the PM plans to list it for $2,400! I was also "all in" for $238k including the lot, and the same model on similar freshwater canal lots are appraising for $375-$410k so I'm definitely very pleased and will plan to cash out refinance as soon as I can. Right now I have 4 lots under construction including the one mentioned above. 

I've not heard builds taking 18 months. I have heard 12 months however. I read somewhere that Cape Coral has something like the 2nd most new builds/capita in the nation right now and their permitting department is absolutely inundated. That's the real bottleneck and unfortunately that's out of everyone's control. 

To your other question, I've learned to be patient. After you close on the construction loan, you'll be staring at a piece of dirt for months and think nothing is going on. Behind the scenes there is a flurry of activity: surveys, design docs, permitting, ordering materials and delivering to the site, etc. So just be patient. It's been a long ride, but the built-in equity upon completion, strong cash flow, and appreciation I've had has been just incredible!