Send this deal to John for a comp check.
He will check the ARV or rent against real closed sales and tell you if the numbers hold. You also get the off-market deals list.
The numbers investors watch in Southwest Florida
The 70% rule
A quick flip filter: pay no more than 70% of the after repair value, minus rehab. It leaves room for holding costs, selling costs and profit. In a slower market or with a big rehab, many investors tighten it to 65%.
Cap rate
Net operating income divided by price, before any mortgage. It lets you compare rentals no matter how they are financed. In Lee County, insurance, flood coverage, HOA and CDD fees can swing it a lot, so put in real quotes.
Cash-on-cash return
Yearly cash flow after the mortgage divided by the cash you put in (down payment plus closing costs). This is the number that tells you what your money is actually earning.
Want deals that already pencil? Get on the off-market deals list or see what we have closed.
Deal calculator questions
What is a good cap rate for a rental in Southwest Florida?
It depends on the area and the property, but many single-family rentals in Lee County land between about 4% and 7% once real insurance, taxes and HOA costs are included. Newer homes in Lehigh Acres and Cape Coral often run higher than Estero or Naples, where prices are higher.
Does the 70% rule work in Florida?
It is a good first filter, not a final answer. Holding costs in Florida, especially insurance and taxes, can be higher than in other states, and new construction competition affects resale prices. Always check the ARV against recent closed sales.
Is this calculator an appraisal?
No. It is an estimate for discussion only. Send the deal to John and he will check it against real comps.
Can John help me find deals?
Yes. John Colin & Co. runs an investing company and works with wholesalers and builders. Join the off-market deals list to see properties before they hit the MLS.