Investment Property Loans

Investment property loans in Florida cover everything from a first rental to a portfolio past the conventional ceiling.

Key features of investment property loans in Florida

• Conventional: 15% to 25% down, up to ten financed properties
• DSCR: qualifies on rental income, with no limit on property count
• Portfolio: local bank programs with flexible, relationship-based underwriting
• Hard money: fast closings for flips and bridge situations
• Commercial, meaning five units or more, which follows a separate process
• Short-term rental income accepted by some lenders
• Title held in an LLC on most non-QM programs

Underwrite the carrying costs, not the rent

Florida rents look strong, and that is the number investors quote each other. The costs underneath them have moved faster, and this is where deals fail now.

Three lines have risen sharply. Windstorm and homeowners premiums have climbed across the state. Condominium association dues have risen hard since the post-Surfside reserve requirements took effect. Property taxes reset toward your purchase price after the sale, so the previous owner’s bill understates yours, sometimes badly.

All three sit inside the ratio a DSCR lender uses, since that ratio measures rent against principal, interest, taxes, insurance and association dues. Consequently a property that penciled at 1.25 on 2022 costs may score below 1.0 today on identical rent. Therefore get an insurance quote and a tax estimate before you write the offer, and use your own numbers rather than the seller’s.

Check the short-term rental rules first

If your model depends on nightly rates, the local ordinance decides whether the model exists. Florida municipalities regulate short-term rentals very differently, and some restrict or prohibit them. A property bought on projected Airbnb income and then let long-term is a materially different investment.

Check the city and county rules, and on a condo check the association’s own restrictions, which are often tighter than the municipality’s.

Who this suits

• Investors building a Florida rental portfolio
• Out-of-state buyers, who should note that DSCR ignores where you live and what you earn
• House hackers using FHA or VA on two to four units, covered in house hacking
• Short-term rental operators in tourist markets, subject to the rules above

Florida-specific notes

• Because Florida levies no state income tax, rental income faces federal tax only
• Rental demand is strongest in Orlando, Miami, Tampa, Jacksonville and Fort Lauderdale
• Florida’s eviction process moves relatively quickly compared with many states
• Flood insurance is required on much of the coastal inventory and belongs in your model

For the strategy across a whole portfolio, read the investment property financing guide.

The ten-property limit comes from Fannie Mae’s multiple financed properties policy. Florida condominium reserve requirements follow Florida Statutes 553.899 and 718.112. Short-term rental rules are set locally; confirm before you rely on projected income.