At high tide, go to your lot, look at the level of water in the canal, then think about a 20 foot storm surge, you will need to plan for this. No Straw houses allowed.
Your contractor can help you, Real Estate agents sell what they build.
You might want to check what you can buy, then think about your cost to build, then think about this difference.
Your agent should have all of this information prior to you even thinking about making an offer. Buyer's agents work for buyers. Listing agents work for sellers.
I just finished building a two story home in Cape Coral on a waterfront lot. As I recall, the first story is required to be block and the second story can either be block or wood frame. I believe the height restriction is 35'. The setback requirements are 7' from the side of the lot, 45' from the street (20' for easement and 25' back from easement) and 10' from the water. You can use your own plans if they meet Florida Hurricane Codes. If you have additional questions please feel free to contact me.
The codes are standard and I am happy to assist. But go to http://www.kevincloutier.com and click on vacant land in Cape Coral. It will show you all land available in MLS to make sure you find a lot you like.
Then I will assist you with obtaining the lot after we make sure your house will fit.
Call me at 239-246-6639 or email me firstname.lastname@example.org
Southern Premier Realty
Cape Coral, FL 33914.