Before you look at properties: nail down your goal, timeline, and management style
Saying “I want to invest in Florida” is not enough. Before you see a single property, it helps to answer three questions with precision.
What do you want your money to do? If you are after monthly cash flow, focus your search on properties with a reasonable cap rate and stable rental demand. If you prioritize long-term value appreciation, look at growth areas with projected expansion. Some properties do both, but the balance depends on the area and the purchase price.
When do you want to see a return? If you need cash flow within the next 6 months, pre-construction with an 18-month delivery timeline will not work. If your horizon is 5 to 10 years, pre-construction in growth areas can generate significant appreciation.
How will you manage the property? Managing remotely with a property manager is the most realistic option for most Latin American investors. Regular presence in Florida widens your options, but it requires more personal involvement.
Answering this before searching for properties prevents the most common mistake: falling in love with a house first and running the numbers afterward, with overly optimistic assumptions.
Calculate your real budget, not the optimistic one
The purchase price is only part of the capital you need available. A common mistake is having exactly the down payment amount without accounting for closing costs, furnishing, and an operating reserve, which leaves the property purchased but with no capital for the first few months or unexpected repairs.
Cash purchase (example on $400,000):
| Item | % of purchase price | Example |
|---|---|---|
| Purchase price | 100% | $400,000 |
| Closing costs | 2% – 5% | $8,000 – $20,000 |
| Furnishing and equipment (if vacation rental) | 4% – 8% | $16,000 – $32,000 |
| Operating capital reserve | 3% – 5% | $12,000 – $20,000 |
| Real total investment | 109% – 118% | $436,000 – $472,000 |
Financed purchase, 30% down payment (same example):
| Item | Example amount |
|---|---|
| Down payment (30%) | $120,000 |
| Closing costs (3%) | $12,000 |
| Furnishing and equipment | $22,000 |
| Capital reserve | $15,000 |
| Required own capital | $169,000 |
These numbers shift depending on the down payment percentage or if the property is a long-term rental without furnishing needs, but the structure stays the same: the purchase price is never the total cost.
Miami or Orlando: two markets with different profiles
It is not just about price. Miami is an urban, international market oriented toward appreciation and liquidity, with areas like Brickell, Edgewater, and Downtown Miami. Orlando is a more residential market, focused on stable rental income and lower volatility, with communities near Disney and Lake Nona. Understanding this difference lets you choose the city that best fits your strategy, or combine both within the same portfolio.
Emerging areas with more affordable prices and strong demand, like Kissimmee and Davenport, and more established higher-end markets to the south, like Fort Lauderdale and West Palm Beach, round out the picture for investors looking beyond Miami and Orlando. If your starting budget is more limited, our guide to Florida cities to invest in on a budget goes deeper into the options with the best balance of entry price and profitability.
Financing options based on your credit profile
Not every financing path requires the same thing, and it is worth distinguishing between them before committing to one.
- Foreign National Loan: does not require US credit history, is based on income and documentation from your home country, and generally requires between 25% and 40% down.
- DSCR loan (Debt Service Coverage Ratio): evaluates the property’s ability to generate enough income to cover the debt, without relying as much on the buyer’s personal income. This is especially useful when on-paper income is hard to document for a US bank.
- ITIN loan or built US credit history: requires having established a credit score, either through a secured credit card or by reporting rental payments.
Rates for foreign nationals are typically 0.5 to 1.5 percentage points higher than for a US buyer. Starting pre-approval before searching for properties has a concrete advantage: in markets with multiple offers, a seller will almost always choose the buyer with pre-approval over one still working through it.
Legal structure: LLC costs and the new 2026 Series LLC
An LLC in Florida costs between $125 and $150 for initial registration, with a $138.75 annual renewal. That cost is minimal compared to the protection it offers: if someone is injured on the property and sues, liability is limited to the assets inside the LLC, not your full personal wealth. The structure also has implications for FIRPTA when selling and for how the property transfers to heirs.
If you are investing with partners or family members, buying under several individual names as “Tenants in Common” complicates a future sale or refinance. The recommended structure is a Multi-Member LLC with an Operating Agreement that defines, at minimum, profit distribution (who gets paid first and whether profits are reinvested), a right of first refusal if a partner wants to sell their share, exit clauses with a valuation formula, and which decisions require unanimity versus a simple majority.
As of July 2026, Florida’s new Series LLC law allows you to create separate units under one parent structure, for example a series for a property in Lake Nona and another for an apartment in Brickell, with different partners in each and without a problem in one property affecting the others. For family investing, an LLC also keeps the property out of Florida probate, since shares pass to heirs according to what the Operating Agreement defines.
The purchase process step by step
- Define your real budget and investment goals
- Select the area and property type
- Get pre-qualified with a lender, if using financing
- Search for and select the property with your agent
- Make an offer and negotiate the price
- Property inspection and legal due diligence
- Sign the closing contract and transfer funds
- Register the property in your name or the LLC’s name
On average, the full process takes 30 to 45 days from offer to closing for a cash or financed purchase of an existing property. For pre-construction, delivery takes 1 to 2 years.
During the due diligence period, typically 10 to 15 days, you can cancel the contract and recover your deposit for any reason. After that period, canceling without cause can mean losing the deposit.
Insurance and asset protection
Before closing, review four types of coverage: property insurance, coverage specific to weather risk (hurricanes and flooding, depending on the area), liability coverage, and any specific requirements from the lender or HOA if the property belongs to a homeowners association. A well-insured property reduces financial risk from weather events, which in Florida are not a hypothetical scenario.
From your first property to a portfolio
Investing in Florida does not have to stop at one property. Over time, many Latin American investors acquire a second or third one, diversifying across cities and asset types to balance rental income, appreciation, and risk. Foreign national mortgage financing, when used strategically, helps preserve liquidity and scale a portfolio in an orderly way instead of committing all your capital to a single deal. If you want to go deeper into how to structure this growth, our guide to foreign national mortgage financing in Florida covers the available options in more detail.
Additional frequently asked questions
Do I need US credit history to invest?
Not necessarily. Foreign national loans and DSCR loans are based on your home country’s income or on the property’s ability to generate rental income, not on a US credit history.
Do I need a lawyer to buy in Florida?
It is not required by law, but it is highly recommended for foreign buyers. A specialized real estate attorney verifies title, reviews the contract, and protects your interests. Fees typically range from $1,500 to $3,000.
What happens if I change my mind after making an offer?
During the due diligence period, generally 10 to 15 days, you can cancel the contract and recover your deposit for any reason. After that period, canceling without cause can mean losing the deposit.
Can I invest in Florida with family members or partners?
Yes, and it is common practice among Latin American investors. The recommended structure is a Multi-Member LLC with an Operating Agreement that defines profit distribution, right of first refusal, and exit rules from the start.
Florida Home Group Realty: Your Gateway to the Florida Investment Dream.
