Looking for investment property in Cape Coral.

Asked by Speed Demon, Los Angeles, CA Wed Apr 15, 2009

I just started doing research on investing in rental properties in Cape Coral. I see a lot of houses in the 50K to 100K range. And I'm wondering if there's any catch attached with these low prices? Are there any hidden fees/cost that I need to be aware off?

If the property is under 100K I could probably pay cash for it without taking out a loan. The only thing I'm scare of is these properties are located in bad areas and I'm better off getting something in the 100K to 200K range in the long run.

I'm planning on visiting Cape Coral at the end of this month, so any help would be really welcomed.

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Mark Washburn, Agent, Cape Coral, FL
Thu Apr 16, 2009
The catch is not on the buy side of the equation, there are many unbelievable deals in the over-built, lower-end of the market. Much of the distressed inventory being marketed right now in Cape Coral is well below replacement cost. It is an truly remarkable time to buy for owner-occupants that will be moving into these houses.

In my view the catch for investors evaluating this market is in the uncertainty of the rental cash flow. On a positive note, much of the rental inventory is being absorbed by those who have been foreclosed on, but there is an over-supply of homes in Cape Coral. Our unemployment numbers have hit double digits and job growth forecasts are not overly optimistic in the near term.

A good resource to learn about the rental market from afar is Craig's List: http://fortmyers.craigslist.org/search/apa?query=cape+coral&… One Cape Coral market segment with high demand for rental property and commands higher rents are the gated communities like Sandoval, Coral Lakes and Heatherwood Lakes: http://www.greaterftmyers.com/cape-coral-gated-communities.php

With regards to your question about price ranges to look in, you will probably have a better chance of realizing positive cash flow with a lower priced home, but might realize better long-term appreciation with a higher priced home that is on the water or in a gated community. As long as the deal works with a very conservative rental income stream, I say go for it!

Good luck with your search!
0 votes
Joe Kendall, Agent, Fort Myers, FL
Thu Apr 16, 2009
Speed Demon,

You should buy a investment home here in Cape Coral Florida , I believe there has never been a better time in history here in southwest FloridaI specialy in Cape Coral. Where anywhere in the Country can you purchase a home that was built within the last 3 years for 80,000 to 100,00 with many that have never been lived in or are slightly lived in?

There are some areas of Cape Coral That have Pending special assessments for water and sewer . These costs should be reviewed prior to making an offer on a property. You should also consider a Realtor that will refer you to an outstanding Rental Company to insure you that the Invesntment home you purchase has positive cash flow or very close to it.

You can search hundreds of foreclosures from my web site at http://www.joekendall.listingbook.com

If you have further questions? My contact information is listed below.

Best regards

Joe Kendall, Realtor Sandals Realty
Waterfront & Foreclosure Specialist
Phone 239-560-0726 Fax 239-236-0422
Discover Southwest Florida http://www.ViewSwFlorida.com
Search Homes in Southwest Florida http://www.JoeKendall.listingbook.com
Read Joe's Real Estate Blog http://www.SwFloridaRealtorsBlog.com
0 votes
Terri Piggott, Agent, Cape Coral, FL
Wed Apr 15, 2009
Hi Speed Demon,
There are some amazing deals to be found in Cape Coral right now. There aren't any catches attached but it's very important to find a Realtor that is experienced in selling foreclosures and one that will work hard to find you the best investment possible. Though you absolutely want to have a home and mold inspection on your prospective home, your agent should also be able to identify signs of Chinese Drywall. This can help keep you from wasting inspection money on a home that will need costly repair. It would be my pleasure to answer any of your questions and assist you with your investment property. You may contact me at 239-443-1051 or visit my website at CapeCoralhomesonsale.com,
Terri Piggott, ABR
Re/Max Realty Team
0 votes
Steve Koffm…, Agent, Cape Coral, FL
Wed Apr 15, 2009
Dear Speed Demon,

The reason the houses are so well priced is simle. The builders overbuilt and when the bubble burst the buyers who were building could not get the construction loans converted to perm loans because the houses would not appraise. If you are buying a foreclosure there are no hidden costs other than anything associated with the condition. I would suggest a home inspection and for you to make the trip to Cape Coral to see the areas. In general there are some fantastic deals on homes that were once priced in the mid $200's now below $100k. If you want to look at these homes you will find them easy to find at http://www.search.capecoralhomesnow.com. If you have questions please feel free to email or call. Have a great evening!

Steve Koffman
Century 21 Sunbelt
#1 team in Florida and #3 team in US for 2008
Web Reference:  http://www.koffman.com
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