Would buying a house with Pool in Cape Coral, FL be worth it for

Question

My close friend started investing in Cape Coral area, purchased a few properties with pools for Airbnb. Telling me it's a great area for Airbnbs. Does anyone have experience with short term rentals in Cape Coral area of Florida ?

Stetson Miller · Answer

Hi @Brian G.,

These EGI's can vary significantly, so I will have to include a fairly lengthy list of assumptions:

-With a purchase price up to $550,000, you could certainly find great 4 beds in that range, so we'll assume a 4/2, 1,800 square feet, and waterfront with a pool

-Property is in the Southern side of Cape Coral, currently experiencing high rental demand

-Property is professionally managed being advertised across all popular STR platforms to achieve maximum occupancy at market value prices

With those things in mind, during the busy season (October-March), you could expect roughly $250-300 per night at about 90% occupancy. Through the off-season (April-September), you could reasonably expect those numbers to be cut in half with an average nightly rate of about $150-175 and 40-60% occupancy. Adding that up, an EGI for a property like this would be about $52,000-$68,500 annually. If anything, even with all of these assumptions, it should be noted that STR income will always be highly variable! These income estimates are also still fairly conservative for what can be expected

Luke Carl · Answer

Nope sorry. Not familiar with this area at this time. My destin house with pool destroys the cash flow universe

Stetson Miller · Answer

@Sheryl Sitman It largely depends on the time of the year that you're purchasing. Right after the busy season, think April-May timeframe, many of these STR's come on the market fully furnished and turnkey ready in that price range. However, now when we're entering the busy season, very few owners are looking to part with their STR properties, regardless of the price range you're looking in

Stetson Miller · Answer

@Alex Tokmazeyskiy Very strong and growing market right now for STR's. Most people vacationing in the area are looking for single family's, preferably with pools and waterfront. Right now, you're looking at a price range for those around $400-550,000 that will still cash flow very well if managed properly

John Thedford · Answer

Right now ANY house in the Cape is good for rentals. My friend says he does very well with STR> I only do annuals at this time. I don't need a job I just need the money.

Sheryl Sitman · Answer

@Stetson Miller makes sense tnx!

Sheryl Sitman · Answer

@Stetson Miller are those prices furnished and rent/STR ready? Or require additional investment to set up the STR - meaning not insignificant investment in interior design and more.

Sheryl Sitman · Answer

Pretty much across the country, STR property management is +- 20% of your property income. There are a few models so you need to read up on the industry, learn your specific market and start talking to the PMs in your area. Cape Coral is a very different market than Orlando or Miami or Nashville, for example. That 20% is going to include a lot but not include everything. You can also go it alone via Airbnb, VRBO etc, but that requires quite a bit of planning and services in place. Anything you buy with or without a pool will require a not insignificant investment to convert to an STR so don't forget to budget that. And to build a pool or do work on a pool these days, keep in mind there is a huge backlog of work among area pool builders

Brian G. · Answer

@Stetson Miller what is the yearly EGI on a prop with a purchase price of $400k-$550k? Thanks!

Stetson Miller · Answer

@Alex Tokmazeyskiy Most short term mangers charge between 20-30% varying based on whether they include typical fees in that percentage or not (cleaning, pool/exterior maintenance, etc)

Would buying a house with Pool in Cape Coral, FL be worth it for

Would buying a house with Pool in Cape Coral, FL be worth it for

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