All Forum Posts by: Peter Davis

I sell new construction homes in the North Cape Coral and a couple things to consider when you're investing there are: the newer the home - the better, and avoid flood zones if possible. Both will help to keep insurance costs down which continue to rise. 

I'm seeing downward pressure on rental rates in Cape Coral as more rental homes come to market, Econ 101. Anecdotally, a local PM I spoke to recently had a new construction home listed for rent at $2,500 with no qualified bites, dropped it to $2,400, then again to $2,300. And everywhere you look there are 100+ unit apartment buildings going up too. That said, one bright spot for landlords is the projected growth for the area and higher interest rates are forcing many would-be buyers to remain renters. Buy it right and have a cushion to ride out the slow times. 

@Marc Gabriel Pangilinan

Not to "poop in your punch bowl" as my dearly-departed Dad would say, but building in Cape Coral is a challenge right now, and has been for the last few years since Covid. Materials supplies shortages, labor shortages, and permitting delays are the biggest factors, not to mention the mess caused by Hurricane Ian. 

Just this week I spoke to one builder who said they can't get the septic systems they typically use which has caused major delays in closing out builds and getting the coveted Certificates of Occupancy (CO's). The recent passage of Senate Bill 1718 by the governor sent undocumented laborers running for cover. I recently visited 18 build sites in North Cape Coral on behalf of the owners and only two of the sites had workers present. Also, a colleague of mine and his wife finally completed construction on their modest gulf-access home in the Cape with a reputable local builder; it took 32 months! 

There might be duplex builders out there that are more on the ball than others and can deliver quality faster, but I suggest continuing to save your money and look for existing properties, preferably the newer the better to save on insurance costs. For example, there are 36 duplexes in Cape Coral currently listed for sale on the MLS, about half are newer construction, and new listings are continuing to come to market. You have some time before you leave the military in 2025 to keep an eye out for opportunities as the real estate market continues to soften into next year.

My opinion. Good luck and thank you to you and your wife for your service!

I spoke to my STR PM in Cape Coral recently and she said there are now approximately 9,000 STR's in the Cape so I think @Adam Bartomeo is correct in saying the market has reached, or is reaching, saturation. Her recommendation for anyone considering a STR is a gulf access home as she's seen them rent better, however the barrier to entry is higher due to the prices. That said, inventory has increased significantly over the past year; there are now nearly 200 $1M+ gulf access homes listed for sale in the Cape at the moment with an average days-on-market of 116. With the higher inventory I think we'll see a further softening of prices and more opportunities for buyers/investors to get a piece of the market.

@Adam Sorrells

North Cape Coral fared better than the south as more of it is out of flood zones and didn't experience significant flooding, mostly wind damage with blown-off roof shingles, downed fences and damaged pool enclosures/screens, and missing well equipment covers. I sell new construction homes in the North Cape and those homes fared well compared to the older homes with older components, especially roofs. 

I second @Stetson Miller 's response: I've referred several clients to Royal Palm Property Management and the feedback has been very positive. 

@Justin Cabral

That is a harrowing tale. Glad you made it!

@Justin Cabral

I go to Miami about once a month across Alligator Alley and haven't had any issues other then the occasional slow down due to the widening they're doing on parts of it. I typically go about 75 MPH, set it and forget it and make calls or listen to music. I find driving up to Tampa more stressful and potentially problematic with the constant jostling across 3-4 lanes and sometimes long delays due to accidents or road construction. Pick your poison I guess :)

@Eric Cozby

I agree with much of the above: I'm selling newer construction Cape Coral homes in the higher $300's and rents are closer to $2,300. However, I am seeing rents flatten out so I wouldn't assume they'll continue to climb in the near term. Good luck!

Absolutely. Send me your email in a PM and I'll add you to the mailing. Thanks So!

@Justin Cabral

Cape Coral is another area you might consider; I've sold a number of STR's here. You get a lot more bang for your buck here especially for gulf-access homes with access from the canals right in your back yard. We've had a quieter than normal STR season this year but it will likely pick up as we get closer to winter season. If you can find a home here (or elsewhere) that's already furnished as an STR with solid rents and reviews, even better.

Good luck!