All Forum Posts by: Michael Simmonds

Hi Michael, what builder are you using? And when did your building permit get approved?

Hi @Michael Simmonds,

To reiterate what @Chris Harper has said above, your timeline is right on track for what we're seeing in this area right now. He's also correct in that the septic systems are rated by the maximum total occupancy of the home (they don't count dens towards that occupancy). This is how you can keep the same system, same home layout, and just make a minor change to how the extra bedroom is filed with the city

Although not a pleasant surprise like you mentioned, luckily this is a very minor issue in reality and everything they're telling you is accurate. The 4 bed vs 3+den designation won't have any effect on the home's value, or the rental income. Tenants don't see any difference between a den and a bedroom as long as it's a functional living space, so you won't run into any issues there

It's unlikely that you would have to pump out the system more than normal with standard usage, but one thing I would recommend is to always ensure your septic alarm is fully operational. If the does fill quicker than the recommended 3-5 year pump out schedule, this alarm will let you know and prevent a backup into the home. Always be sure to educate your tenants on what this alarm is, and how to tell if it's going off so they can notify you immediately

@Michael Simmonds  That has to be frustrating. Have you tried to call the city or to go down there for a reality check? The hurricane no doubt had a significant impact but you need to be sure it is not being used as a convenient excuse. I do not know to say whether the 3 bed + den v 4 bed makes a difference but hard for me to believe it does not, unless it is commonly known that families can use dens as bedrooms?  Check into that!  I am not familiar with who you are working with but always recommend vetting any company deeply before signing and paying -- those companies tend to have a lot of overhead they need to pay - out of your bottom line. Sometimes finding small, local partners to do your own thing and do it your way and under your control can be a great way to go that has more accountability built in. But yes, that requires learning a lot and taking initiative. So maybe you are "paying" for the PASSIVE experience with delays and changes that take you for a loop.

The timelines seem very standard for Cape Coral, to be at septic approval/inspection for a year if I read your post correctly. 

Regarding the septic approval, my understanding is that systems are rated for number of bedrooms under an assumption of usage and per person usage. So it’s probably not big enough to meet CC codes for 4 bed. I’d be shocked if septic rating affect the rent though. Maybe pump it slightly more frequently.

Could it be a point during sales? Maybe although I don’t think it’s a significant one.

I have a build in Cape Coral, and a few in North Port and Ocklawaha in various stages going on right now through RTR. Some are 1031 properties as well. All recommended for different reasons, but very solid markets. @Zach Lemaster has the magic touch so definitely reach out to him. Just saw some new TX multifam properties they have on their list in San Antonio that look promising. Good luck on your 1031!