Ricardo De Castro - Design-Build & Development

Here are the project estimates on a $2,871 tax deed acquisition in Lee County, FL.

Every number below was produced before bidding.

—

851 Homestead Rd S · Lehigh Acres, FL
C-2 Commercial · Corner lot · 22,403 sq ft
Tax deed auction · July 14, 2026

—

THE ACQUISITION

Opening bid: $2,871
Assessed value: $31,299
Value multiple: 10.9×
Last sale (2006): $115,000

THE DEVELOPMENT

Total project cost*: $1,000,000
Building footprint: 4,422 SF under AC
Retail units: 4
Parking spaces: 18 (code minimum)
Lot coverage: 19.7%

(*Includes acquisition, clearing, design,
construction, permits, and contingency)

THE RETURNS

Annual rent income*: $100,000
Annual property tax: $9,000
Net operating income: ~$91,000
Return on cost: ~9.1%

(*Based on 4 units at market NNN rate
$22–25/SF in the Lehigh Acres corridor.
Projections are estimates, not guarantees.)

THE CONTEXT

C-2 retail competitors nearby: 0
RS-1 residential on all sides: Yes
Main commercial corridor: Yes — Homestead Rd S
Two street frontages: Yes — corner lot

—

The headline number is $2,871.
The real number is 9.1% return on a $1M project.

But neither number means anything without the analysis behind it — the zoning verification, the site plan, the parking compliance, the subdivision design, the architectural render.

That is what this case study series is about.
Not the bid. The work that justifies the bid.

I’ll post the auction result on July 14.

—

Case Study No. 001 · Full analysis in bio.

What return threshold do you require before you’d move on a deal like this? ↓

Most investors see a parcel ID.
We see this. 👇

851 Homestead Rd S — Lehigh Acres, FL.
$2,871 opening bid. C-2 zoning. Corner lot.

Here's the full analysis we ran before bidding:

📐 ZONING
C-2 Commercial District confirmed.
Lee County §34-845 — permitted uses include retail, restaurant, salon, office, convenience store.

📏 SETBACKS
→ 25 ft — Homestead Rd S (west, local street)
→ 25 ft — Ames St E (south, local street)
→ 15 ft — C-2 adjacent (north + east)
Buildable zone: 67 ft × 119 ft

🅿️ PARKING
18 spaces designed to code minimum.
Back-to-back rows sharing one 24 ft aisle.
Saves 24 ft of depth vs two separate aisles.
More building. Same compliance.

🏛️ BUILDING
67 ft × 66 ft footprint = 4,422 sq ft.
Single story. 19.7% lot coverage.
Max allowed: 8,961 sq ft (40%).
Room to grow.

🏪 SUBDIVISION
3 scenarios designed:
→ 3 equal units (~1,474 sq ft each)
→ Anchor + 2 smaller units
→ 4 equal units (~1,105 sq ft each)
Bathrooms placed per Florida Building Code Table 403.1.

One corner lot. One analysis.
Built before the bid.

This is what due diligence looks like.

📅 Auction: July 14, 2026 · 10:00 AM ET
Lee County, FL · Case #2026000003

Follow for weekly deal teardowns. 👆

Most people look at land and see dirt.
Experienced developers see leverage, cash flow, and long-term control.

The process is simple — but not easy:
Find the right land.
Design with purpose.
Develop with discipline.
Build with vision.
Hold what produces income. LandDevelopment FloridaDevelopment PassiveIncome

Los desarrolladores y constructores con experiencia suelen utilizar los “diseños flexibles” como una estrategia de gestión de riesgo y creación de valor, especialmente en mercados de rápido crecimiento, donde la zonificación, el financiamiento, la absorción y la demanda de compradores pueden cambiar durante el ciclo de vida del proyecto.

Experienced developers and builders often use “flexible layouts” as a risk-management and value-creation strategy — especially in fast-growing markets like Lehigh Acres where zoning, financing, absorption, and buyer demand can shift during the project lifecycle.

Land is patient.
While others chase noise, disciplined investors acquire what time cannot create.
Every great development begins with the courage to see value before the market does.

DeveloperMindset BuildToLast RealEstateDevelopment InvestmentProperty