All Forum Posts by: Allen Wu

I've lived in SWFL for the last 12 years now and currently do home inspections in the area. Your numbers seem to be pretty solid and the area is continually growing and will continue to as more people move from up north and the busy east coast of Florida. The Cape has always been popular with families looking for housing that's affordable, safer, with better schools and a better nighttime scene for all ages. One thing I'd recommend finding out is if it's already been connected to the new central sewer and water or if it's still on septic and well. If it hasn't then you'll need to take into consideration the 20k assessment into your cash flow analysis. You can put it onto your property taxes and pay it off over a number of years tho. Just one thing to be mindful of when looking at properties in the Cape.

Thank you so much for the feedback. I agree for this property in the south east Cape Coral area the assessment via sewage and utilities are already 100% paid off.

1 Vote

Cape Coral, Florida

Thanks John. You mean lots of people will get hurt if they buy new builds and buying duplexes a crazy values like over 300k?

0 Votes

Originally posted by @Stetson Miller:

@Allen Wu The biggest thing to watch out for in SE Cape is the flood zones, which are almost guaranteed to kill any potential cash flow you can find right now in that area. The appreciation upside is more than slight, it's huge, and that's enough for some people. However, if solid cash flow is what you're looking for, Lehigh Acres is another area that can produce much better numbers, and still retains that decent appreciation potential

Thank you so much! Very helpful. I’m looking for some slight cash flow with appreciation. The duplex is not in a flood zone. My pro forma says I’ll cash flow around $200-$300 after all in cost (mortgage, tax, insurance, property mgr, etc). I may just buy flood insurance for sleep at night insurance even though it’s not in the flood zone. If i pass on insurance, it should be another 50-60 a month in cash flow.

Appreciate your insight that Cape Coral is appreciating so that’s a positive!

Thanks again!

1 Vote

Cape Coral, Florida

Originally posted by @John Thedford:

Originally posted by @Dan Sarao:

I recently was in town a few times to look at 3-4 duplexes in both SE and SW Cape, priced at the $330-350 range. The level of development of brand new duplexes, especially in SW Cape appeared to be very high, which made me wonder as well if the market could support all of the rental units. I ended up picking up a duplex in SE Cape that needs some work near downtown for around $200K. We leaned toward SE because it is more established and closer to downtown Cape and downtown Ft. Myers, thinking it would be more desireable for people commuting to work and for entertainment.

@John Thedford - out of curiosity, do you think the development of duplexes in SW Cape will continue to happen?

Development will continue to happen as long as there are buyers. I think the new units are too expensive to make a good return. You probably made a wise decision with your current purchase. The market IS changing to a buyers market and everyday I see LOTS of price reductions in the MLS. I am scouring for a deal but haven't found anything that made sense. I did look at a 1994 pool home with about 2K square feet for just over 200K. Not bad....I did consider that one.

John - Do you still think market is a bit saturated due to newer duplexes? I’m thinking about buying a duplex in the SE for slightly under 300k. Looks like each unit would rent out for 1000-1200. A slight fixer. Appreciate your thoughts on the duplex market especially for SE area.

0 Votes

Originally posted by @Troy Albers:

@Allen Wu $1000-$1200 rent on a $300k property is a poor investment at best. That would make no sense to me.

Thanks so much for the response. It’s 1000-1200 per unit, so 2000-2400 a month in total for the 300k property

0 Votes

Cape Coral, Florida

Hello Friends,

I’m interested in buying a duplex for under 300k in SE Cape Coral. This has 2 bed rooms and 2 bath rooms. Current rent goes for 1000-1200 a month. What do you think about the SE area as an investment? Do you think Cape Coral is a good long term (10 years) hold? I’m a buy and hold investor and appears Cape Coral has decent cash flow with some slight upside. Any general thoughts or feedback about buying and holding in Cape Coral will be helpful!

2 Votes

Cape Coral, Florida

Originally posted by @Kyle Varga:

Originally posted by @Travis C.:

What area can you possibly buy that cheap in San Antonio and rent it ultimately for $2500? This, up front, doesn't marry to my market knowledge locally here and would be curious on ARV if you don't mind me asking.

I'll be honest, when I purchased the property, I expected it to rent for around $2000 a month. It's in a nice HOA on the northeast side of town. Large 5 bedroom home. The only reason I even tried for $2495 + $50 for having a pet. was a few comps were at or higher and weren't remodeled, so I went for it. Guess the market liked my remodel because it went fairly quickly for being on the higher end. I have another rental in the same zip code going for $1600 that I will have to increase this next renewal cycle.

I’m in the NE below Helotes and it’s about $1600 a month too. It’s a 3 bed and 2 bath

0 Votes

Originally posted by @Kyle Varga:

Originally posted by @Travis C.:

0 Votes

Wow! Great deal! Which part of San Antonio? I invest in an SFH south of helotes.

1 Vote

All Forum Posts by: Allen Wu

Allen Wu has started 31 posts and replied 319 times.

Post: Cape Coral Duplex in SE

Post: Cape Coral Rental Market Saturated?

Post: Cape Coral Duplex in SE

Post: Cape Coral Rental Market Saturated?

Post: Cape Coral Duplex in SE

Post: Cape Coral Duplex in SE

Post: San Antonio BRRR number 2

Post: San Antonio BRRR number 2

Post: San Antonio BRRR number 2