All Forum Posts by: Trevor Fleck

@Tia Wilson another variation of a BRRRR can happen with a new build to rent as well. For example, in Cape Coral I purchased a lot and built a home for a total all in price of $238k back in February of last year. It now appraised for $410k. Because I funded the deal instead of buying from the builder on the back-end, I had built-in equity. Additionally, with the appreciation during the build time, I am able to cash-out refinance, pull out all my money, then repeat. So more of a "Buy, Build, Rent, Refinance, Repeat - BBRRR.

@Rong Tan the Valencia model. The inside is nearly finished, just waiting on septic inspection from the State Health Department to finish things up outside. Lots of really nice customizations like upgraded windows, paver driveway and sidewalk, tile floors, irrigation system, etc. 

@Robert Knight that's you slamming the volleyball down in the article pic right Rob? I was so impressed with the quality of the build you are developing for my family. For the benefit of the BP community, as a developer what makes you excited enough to focus development in the Cape Coral area vs. other areas of FL? 

Hi @Audrey Spina good luck with your call. I'd be happy to share my experiences. Feel free to message me directly if you'd like. 

@Santosh Bobbili agree with others. A HELOC is a powerful investment tool, but you should really treat it as a short-term solution with an exit strategy. For example, I've used HELOCs to increase my purchasing power with cash and then refinancing into long-term loans. I've also used HELOCs in Cape Coral to fund the construction of build to rents using private funds and then refinance out on the back end. Bottom line, if you don't have a firm exit strategy to pay back your HELOC then you haven't found an appropriate investment to justify risking the roof over your head.

@Audrey Spina I was/am in the same boat. My wife and I both have full-time demanding jobs and two young children (4 and 3 respectively). We share childcare and household duties 50:50. I used to be a DIY investor in several markets across the country, but there just wasn't enough hours in the day when my kids were born and my family is my true north so taking time away from them wasn't an option. 

That's really why I decided to go the turnkey route and I've had a lot of success with that. For me, that meant vetting a bunch of turnkey companies back in 2019, speaking with several over the phone, visiting 1-2, and then making a decision. I ended up with Rent to Retirement and I couldn't be happier. Happy to chat (when you have time) if you have any questions. 

@Jorge Siverio traditionally the NW part of Cape Coral will have higher comps from my understanding - especially the closer you get to the Ocean and the golf course. Talking with an appraiser who has been in Cape Coral since the mid 90's he mentioned developers initially came into the NE and built starter homes. That's starting to change, and one could argue the NE is more accessible to services than the NW. However, right now the NW will have higher comps due to bigger, higher-priced homes being developed there. 

Honestly, you can't compare anything from last year to now in Cape Coral. The price of land has tripled since last summer. When I do a quick Zillow search for waterfront lots 1500-2000 sq ft 3+ beds, 2+ baths, I get exactly one older home. DR Horton for example does have some currently pending around the $305k range, but they are quite a bit smaller (1200-1300 sq ft). 

Don't get me wrong, some people don't want to tie up their funds for 12-14 months and want to take advantage of the historically low interest rates so they are willing to forgo $25-$30k in equity to tie up an express home like DR Horton offers. It's simply a different strategy. I plan to tour the DR Horton homes when I'm in Cape Coral next week to get a sense of their build quality vs. the ones I'm having built with Rent to Retirement. I'll let you know what I find out!

@Jorge Siverio I'd be curious where you're seeing those DR Horton Express homes for $300k. Is that on their website or an aggregator site like Zillow? When I looked for an apples to apples (same sq footage and beds/baths) the DR Horton Express home looked to be about $330k. 

@Gennaro Coscia I'm in Apex myself! We'll have to connect and get coffee sometime. I can't speak to subdivisions, but as a start I am doing new construction build to rent in Cape Coral, FL. Purchasing lots and building on them. Might be a way to dip your toe in the water. 

@Michelle Reid I'm a big fan of the LTR market in Cape Coral right now. For perspective, last April I closed on a new construction loan (build to rent) with a turnkey company there (Rent to Retirement). Lot cost $10,500. I was all in (lot + construction costs) for $238k and had assumed $1,850 in rent. Now that the unit is finished, it's going to be listed for $2,450/month and the same model on similar lots are appraising for $410k. There is a real dearth of available rentals there right now and the new builds can't keep up with demand. Might be something to look into. I've got four builds going on right now.