Buying land in Cape coral - need advice

[Swapna Nair]

I am looking to buy vacant land in Cape coral to start building single family homes. Is there anything specific to look for when analyzing land deals in cape coral? I am looking to buy in the NE and NW cape.

[Trevor Fleck]

@Jessica Pearl I've purchased 7 lots in the Cape Coral area since February of last year. What I can tell you is that in less than a year, a lot that used to cost between $10-$14k on a freshwater canal in NW and NE Cape Coral (clean lot - no protected species, not in a flood zone, no trees, flat, away from busy road, etc.) now sells for ~$40k. So appreciation on land - even in the last year - has been substantial. However, depending on what you plan to do with the lot a few other things to consider:

1. In February my build cost was $223k for a 1600 sq ft 4/2. Today it's closer to $255k. 

2. Rent was estimated at around $1,800. Today it's closer to $2,300. 

3. Appraisals were coming in around $275k. Today they are coming in between $350k-$410k. So to @Stetson Miller point, if you plan to build and can get in (lot and build) for under $300k that does give you some options to sell if the market stays hot or rent for around $2,300 which is a great plan B or (or plan A with groups like Rent to Retirement). 

Aside from reviewing comments from 3 years ago and wishing I had purchased 100 lots at $8k/lot, I did want to mention that Cape Coral now allows a 4/1 ratio grade on freshwater canal lots which substantially reduces the price over having to build a seawall. 

Lastly, you know the saying about land, they aren't making anymore of it and there are only so many areas in southern FL under $50k that close to the Ocean. I'm not saying land is going to triple or quadruple like it has, but I wouldn't be surprised at all if it continues to rise through at least 2022. I'm personally executing a combination of some land banking, some build to sell (with renting as a backup option if the market softens), and some build to rent. 

What were you thinking of doing with the land? Just hold as an investment?