New Investor Seeking Feedback On Cape Coral

[Jeffrey Weiss]

I am looking to begin my journey in real estate investing by purchasing a couple properties (SFR and/or duplex) in different out state markets. As we are pretty far along in this market cycle, I am searching for deals in markets that will hold up well in the way of year-round rental demand, even in the event that the market cools off significantly. I am considering a SFR in Cape Coral, however I am questioning this option, wondering what can sustain the rental market, given that there's not a major metro area/job market in this area.

Would be helpful to hear feedback from those familiar with this market - is this a strong long term rental market, or is it still primarily retirees moving there, as well as a more seasonal market? 

Thanks in advance

[Stetson Miller]

Hi @Jeffrey Weiss,

This is a question I answer often for my clients, as it's definitely a valid concern from an external perspective when investing in smaller Florida cities apart from the metros. One thing to note is that for all of these coastal towns, tourism and hospitality industries are always going to be some of the top supporters for these areas. Different areas may have varying degrees of support, but in Cape Coral specifically, this is a very large component of the local economy

In addition to that, with the older population, healthcare is also a huge necessity and a large economic driver in Cape Coral as well. Construction and remodeling is another industry that is not showing any signs of slowing in the near future with larger developers heavily invested such as Pulte Homes, D.R. Horton, and Lennar

Another thing to note about Cape Coral is that although the variety of job opportunities available directly in the city is limited, the drive to larger nearby cities such as Fort Myers, Naples, and North into Punta Gorda is often less than 30 minutes. Cape Coral offers housing in hard to find price points and with unique amenities not available in these other areas, so growth, employment opportunities, and diversified industries in these larger cities also highly benefit both the purchase and rental demand in Cape Coral