When purchasing a new property in our Cape Coral, Florida market there are a few unique differences you will want to ask your RTR consultant about.
Pre-Construction Financing - The build to rent model homes we have designed to provide the highest cash flow and best return on investment can be built at any time. Because they are a specific build-to-rent model and not available to the public, you must secure a construction loan to get one built for your portfolio. This will allow you to lock in pricing well below market value. We have already secured relationships with the best lenders for construction financing and will make the introductions to get you started.
Financing Options - While the options are different compared to a conventional loan, the concept is still the same. There are all sorts of creative financing options that could be as low as $50k out of pocket. We have our consultants available to help you determine the best option for you.
Neighborhood Class - Not only is the neighborhood low in crime and has great reviews for schools; but the whole area is brand new. The streets, gas stations, grocery stores are all new. This is a highly sought-after area of town. Due to this demand, rents are higher than projected and appraisals are going up by the month! We are seeing dramatic appreciation in this area each month!
ROI - Cape Coral has consistently exceeded our projections on rent and total value. We have been updating our marketing materials constantly to keep our investors informed on the amazing returns. This investment will provide both cash flow and equity growth that will be difficult to replicate in other markets. To see the latest projections schedule a call with your RTR Consultant now.
Exit Strategy - If you are looking for a way to turn your money quickly there is enough equity from the completion of the build to sell for a profit and parlay your investment into a couple of investments. If you are like most of our investors who don't want to sell but still want to use the equity you can get a HELOC or line of credit to access your equity for additional assets that you want to acquire. If you are like most of our investors who don't want to sell but still want to use the equity you can refinance your loan at the higher market value to pull the majority of your capital back to reinvest or use a HELOC to reinvest the capital. This is what we like to refer to as the BRRR model for new construction - Build, Rent, Refinance, Reinvest.. then another R of ultimately Retire!
Why Build to Rent?
Build 2 Rent takes the best of SFRs and upgrades the experience by creating new construction homes with elevated finishes and professional property management that will attract the “rent by choice market.”
The rent by choice market is selective and looking for quality finishes with granite counter-tops, hardwood cabinetry, stainless steel appliances and smart home technology. The pandemic has further focused B2R design to include a home office, more space and a backyard without all of the responsibilities and hassle that come with homeownership.
THE B2R MARKET IS VERY ATTRACTIVE TO MILLENNIALS AND BABY BOOMERS
We have 95 million millennial's who can't buy (43% have less than $3k for deposit) and 75 million baby boomers who are moving into retirement age but instead of selling the larger home they needed while raising their family, they are opting to sell and rent and use the equity from the sale to help with the cost of retirement.
NATIONAL GROWTH OF THE B2R MARKET
According to the National Association of Home Builders, in 2017, 37,000 homes were built as rentals. In 2018, that number jumped to 43,000. About 16 million rental properties today are single-family homes, and another 13 million rental households are expected to be formed by 2030, according to the Urban Institute. Rents for single family are growing fast at 4.5% annually now compared with 3% rent growth for multifamily apartments, according to John Burns Real Estate Consulting.
ADDITIONAL REASONS TO INVEST IN BUILD-TO-RENT
- B2R is proving to provide solid returns on A-class assets
- Interest rates are at a historic low and locking in a 30-year fixed rate mortgage is fantastic for maximizing cashflow - it is also a great hedge against the coming inflation
- New construction rents are higher, have less turnover, and attract higher quality renters
- Less hassle and cost with maintenance issues, 1-year bumper-to-bumper and manufacturer appliance warranties, 10-year HVAC warranty, and 10-year structural warranty
- 6 month build cycle with homes rented normally in less than 30 days
Why Cape Coral?
Cape Coral is a master-planned, pre-planned community known as the “Waterfront Wonderland with over 400 miles of navigable waterways, it has more miles of canals than any other city in the world.
The city was founded in 1957 when two brothers from Baltimore, Maryland, Leonard and Jack Rosen, flew over the peninsula known as Redfish point, across the Caloosahatchee River near present-day Fort Myers. Cape Coral is a city located in South West Florida on the Gulf of Mexico.
The city features the public Yacht Basin and Club, the Sun Splash Water Park, along with 30 other recreational parks and seven golf courses. It also offers a variety of Gulf beaches in its immediate neighborhood, such as Sanibel Island and Fort Myers Beach.
Forbes has ranked Cape Coral/Fort Myers as number one for America's fastest growing cities of 2017.
Forbes also ranked Cape Coral #2 in the 10 Hottest Real Estate Markets To Watch In 2017 (Primary reason sunshine affordability and jobs growth)
Cape Coral ranks No. 3 on a list of “The Most Affordable Cities to Live in Florida” by Livability.com (March, 2016)
The Cape Coral-Fort Myers MSA made the Top 10 list for having the fastest job growth. (Bloomberg, August 2016)
Cape Coral ranks No.10 on Forbes' list of Cities to Watch” for having the fastest-growing populations and economies in 2016. (March 2016)