All Forum Posts by: Patrick Bavaro

@Dan Thomas people are flocking to Florida to escape other high priced places of the country. Simply an issue of supply and demand! The city is growing at a pace of 7% per year according to this article. https://files1.revize.com/revize/capecoralfl/government/publications/docs/Corporate_Guide.pdf

In any event, I’m happy to tie up $30k for a year for returns like this.

@Dan Thomas It is not a spec home where everything is in place regarding permitting etc and I’m just buying the home from the builder. I’m the one actually financing the permitting process, buying the lot, build etc. It’s starting from ground Zero. In turn, I get price points that I otherwise would not be able to get. If I were to buy a home as a spec home that was already being built and they just needed a buyer, I’d be paying full retail value of at least $340k IMO to get It. This is a very normal timeline for a new build purchase like this.

@Eric Morel I can’t speak for any of the other turnkey properties you mentioned, but like you, I decided to purchase my first investment property last year through a turnkey provider called Rent To Retirement. They are all over BP, I’m surprised you haven’t heard of them! Anyways, I’m currently building a new build in Cape Coral FL with them. Total all in costs is $265k, and only required 10% down. Rents are $2300/mo and post appraisal construction is between $340k-$410k depending on location. I don’t count this are hard fact truths, but I also received an email from Zillow for my zip code in Cape Coral this week that had It projected to grow by 27% over the next year! Bananas. Would be happy to connect and share my experience. Good luck!

@Alexander Hartwell congratulations on taking the first step! I too got started this year with REI and now own 3 properties. Planning on 3-5 more this year as well! Like you, I live in a market that is extremely expensive and the ROI just isn't all that great. Because of this 2 of my 3 rentals are actually out of market on the other side of Florida about 4 hours away. One is in Ocala and the other Cape Coral. Both markets offer a relatively low buy in and are EXPLODING in growth.

Currently I’m building a 4/3 new build in Cape Coral. Total all in cost is about $265k and I financed It at around 3.6% with 10% down. Rents right now are at about $2300 and climbing. Currently post construction appraisals are coming back at $340k-$410k depending on location of the property. So, I find myself in a position to sell and make a quick $100k return potentially, or keep It and rent for the cash flow and future appreciation growth. Not a bad position to be in! I’d be happy to connect to share experiences. Good luck!

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $265,000
Cash invested: $30,000

Contributors:
Zach Lemaster

This purchase was a new build in Cape Coral FL that was offered by a turnkey company. Total build cost, with the land, was $265k for a 4/3 SFH. Rents are currently $2,300 and post construction appraisals at $340k-$410k depending on where you build. This was my first true investment purchase.

What made you interested in investing in this type of deal?

Saw the numbers and feedback of others with similar deals and decided to move forward

How did you find this deal and how did you negotiate it?

Found it through a turnkey company offering this build and package. Networked with several dozen investors for due diligence and couldn't be happier.

How did you finance this deal?

10% down (land purchase) construction to perm loan through credit union

How did you add value to the deal?

If you build it, they will come.... or rent it.

What was the outcome?

Super successful new build with over $100k in instant equity.

Lessons learned? Challenges?

Should have bought more!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, a stellar turnkey company. I'd be happy to share my experience with anyone interested.

@Marco Batista I got in around May/June with the lot purchased and closed on financing end of July. Since this is a construction to perm loan where I am taking on the financing of the build etc., It takes longer than compared to a spec build where the builder does this but the benefit is that I get a better deal. I am about 2 weeks away from finishing the permitting process (estimate), so I hope to be going vertical soon. They told me in the beginning to expect about 12 months in total which is still on par with my timeline. Overall, experience has been very positive and while home prices for these builds have gone up a bit, I think they are still a killer deal. I just got a Zillow market report this morning for my zip code in Cape Coral and the projection is a 27% increase next year. That’s not scientific of course, but they have a good amount of data that I still like to take into account. No time like the present! End of the day, I’m only tying up around $30k for a year for a great product on the back end. Just need to have patience! Hope this helps. Let me know if you have other questions

@Marco Batista there are a few that I’ve found, but I moved forward with a company called rent to retirement for a new build in Cape Coral. At the time (6 mo ago) the total build cost was $265k and only required 10% down. Rents today are around $2300/mo, and post construction appraisals around $340k$-$410k depending on location. Would be happy to connect about my experience with R2R. Good luck!

@Jonathan Schwartz yes you do. They need 2 months of seasoning as any other loan would require through a traditional bank. I'm using a 2nd home loan right now for a new build in Cape Coral that required the 10% down. Total cost was $265k, and planning to convert to a LTR or keep as a possible STR. Not sure yet. LTR rents projected at $2300/mo. Post appraisal construction is between $340k-$410k depending on lot location. Would be happy to connect to share my experiences. Good luck!

@David Barton hey David, I live in SoFlo and totally get It. In fact, this exact reason is why I’ve decided to invest out of market, but not State. Right now I am buying in Ocala FL and Cape Coral. Currently building a new build in Cape Coral with a total build price of $265k that only required me to put 10% down for the financing. Rents are $2300/mo and post appraisals coming back at 340k-$410k depending on lot location. Would be happy to connect. Good luck!

@Ryan Estes good to see another Vet investor on here! VA was exactly how I got started too after living in our home for a year. Rinse and repeat! as stated by some of the others It really just depends on your goals. For me, I like the option of having moderate cash flow with high chance of appreciation as It will allow em to leverage that equity one day into more deals. I live in SoFlo and invest in other FL markets that are cheaper and currently on the rise is population growth such as Ocala and Cape Coral.

Right now, I’m actually using a turnkey company for a new build project out in Cape Coral FL. Build price is about $265k all in with only needing 10% down. Rents are $2300/mo and post construction appraisals are around $340k to $410k depending on the lot location. Would be happy to connect to share my experiences in these markets! Good luck!