I need someones advice who knows the Cape Coral Market! I have the option to buy 3 New houses right now for around $208K to $200K range. Was thinking of renting them.
Do not know the Taxes? Insurance? Rent Amounts? OR how well these may rent?
Here is the Discription with the street address removed by me!
Any good or bad feedback would be Great!
Brand New, Never Lived in! 3/2/2 Cape Coral, FL - XXXXXXXX Cape Coral, FL 33909. 1,634 sq. ft. Living Area, 2,411 total sq.ft., 3 Bedrooms, 2 Baths, Family Room, Dining Area, Kitchen and Breakfast Nook, Screened in Lanai under Truss, 2-Car Garage. This split floor plan has a wall of sliding glass doors that open to a beautiful lanai area. Raised panel doors on Kitchen and Bath Cabinets, Kenmore appliances, Laminate Counters, Stain resistant Carpeting, Vinyl in Kitchen and baths, Well and Septic, Reverse Osmosis water purification system, Builder is First Choice. Should Appraise for $260,000+ Picture of front of house below!
That is a good looking house, above average for Cape Coral. Cape Coral is the blue-collar up and coming suburb to Ft. Myers. I can’t attest to the rents in the area but the price does not sound too bad. I’m familiar with South West Florida. Beware the property taxes and in particular the insurance. Given the potential for Hurricanes the hazard insurance could run $1500+ per year on each property. Also, the market has seen exteme price appreciation for a number of years but those prices have definitely stabilized and are declining. I hope you are going to visit the properties before purchase? Also, be aware that there are thousands of building lots and spec houses in Cape Coral so prices may remain soft.
Yes do tell!! We’d all are waiting with baited breath. Get out that crystal ball!
I’m sorry I don’t mean ot be glib, but how does anyone know the answer to that? If they gave you an answer would you believe it?
If so I have a bridge to sell you in Brooklyn.
The bottom line is no one know what the future holds and if they claim that they do run.
I will tell you this though IMHO it is very hard if not impossible to make a new house cash flow at this point with all the expenses factored in. With taxes and insurance the way they are in FL. I don’t see it happening.
I know your probably buying using Option Arm loans which mean you need to have at least 7% appreciation per yr for 3-5yrs based on loan prepay to break even. Something this area does not have now.
Houses are still appraising high because of all the preconstruction homes that have been completed but not sold using comps over a 3-9months period. Many investors paid 260-300K for those homes with hopes of it being worth 350K b/c of how the market was moving when they got into them. Now the market went in reverse and those 260K purchases are selling for 225K to get out and take there losses. Many homes for sale and rent. Rent is about $1200-1500 a month on the high end there. Job market is not very strong. Bad thing about Cape Coral where those homes are, is in the morning from 7-9AM it takes about 30-45min to get over the bridge to get to anywhere. Major traffic jam and city needs to address that issue. So commutes are rather long when your heading to I75 from your house. Very few people will be working on west side of bridge unless retail/banking/ins most likely.
As for taxes, in 2006 it cheap, you will see tax bill around $1200 a month probably, but 1007 prepare for $5000-6000 bill. Insurance is still affordable there, around $2000 a yr but if a hurricane comes or price increases like we see yearly expect to pay $2500-3600 a yr over the next couple yrs w/o a major hurricane hitting the area. Many SoFl areas have 50-100% increases yrly in insurance now.
I would not recommend buying over there. Move more north to Tampa area. Market is actually appreciating in some areas as well as Ocala. middle of state is becoming hot. Orlando has alot of action and 5-7% appreciation still.
Cape Coral and Lehigh are on a toward spiral and have not bottomed out since investors are still holding inventory and barely getting by. Wait for the reports on all the preforeclosure and foreclosed homes in Cape Coral. When it hits a high of about 1 home per 100 homes you know the area is hitting a low and houses will be bought for 50cents on the dollar using foreclosure comps, not new home price comps…
