If you’ve been eyeing that pool home with palm trees swaying out back (same 😎), the next big question is how to pay for it smartly. Florida has unique quirks—insurance, HOA rules, condo guidelines, flood zones—so getting your financing dialed in early can save you serious time and money.
If you’re brand-new to STR investing, warm up with my posts:
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How to Buy a Profitable Short-Term Rental in South Florida. soflocoastalgroup.com
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Cash Flow vs. Appreciation: What to Prioritize in a Florida STR Property?. soflocoastalgroup.com
The main ways to finance a Florida STR
1) Conventional investment mortgage
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Best for: borrowers with stable W-2/1099 income who want mainstream rates and terms.
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What to know: expect standard underwriting (credit, income, assets, reserves). Lenders will look closely at property type (single-family vs. condo), HOA rules, and projected rent (via appraisal addenda).
2) Second-home mortgage (a.k.a. vacation home)
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Best for: buyers who’ll use the property personally throughout the year.
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What to know: you’ll certify you intend to occupy it yourself; there are usage and distance-from-primary-home guidelines. Some lenders restrict frequent short-term renting—read the fine print.
Pro tip: If your plan is primarily income, go investment or DSCR instead of a second-home loan.
3) DSCR (Debt Service Coverage Ratio) loans
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Best for: investors who want the property’s rent to do the talking.
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What to know: qualification is based on market rent vs. payment (PITI/HOA/insurance), not your personal DTI. Great for entrepreneurs or portfolio builders. Terms, required reserves, and allowed property types can vary by lender.
4) Portfolio / local bank loans
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Best for: unique properties, small multi-families, or clients who like relationship banking.
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What to know: flexible underwriting and creative terms (balloons, ARMs) can help when conventional guidelines are too tight.
5) HELOC / Home Equity Loan on your current home
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Best for: tapping existing equity for the down payment (or all-cash buy + quick refinance).
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What to know: compare variable vs. fixed options and stress-test for rate changes.
6) Cash-out refinance on another property
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Best for: owners with sizable equity who want a larger lump sum at fixed terms.
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What to know: run the numbers on the blended rate you’ll pay across properties.
7) Partnerships & creative structures
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Best for: spreading down payment, experience, and risk.
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What to know: use clear operating agreements (who does what, who gets what), and align on exit plans and reserves.
Florida-specific underwriting “watch-outs”
Florida is fantastic—but lenders and insurers have a few extra checkboxes:
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Insurance: Wind/flood coverage can materially impact your payment. Get a bindable quote during your inspection period.
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Condo/condotel rules: Some buildings are non-warrantable due to short-term rental policies, reserves, or commercial elements. That can limit conventional financing—portfolio or DSCR may be your friend.
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HOAs & local ordinances: Confirm STR permissions (minimum nights, registration, caps, parking).
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Property taxes: Budget for reassessment after purchase, plus tourist development tax compliance if applicable.
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Amenities drive ADR: Pools, outdoor kitchens, and game rooms move the revenue needle; underwrite conservative occupancy.
Want a reality check on today’s deal flow? Read: Can You Still Find Short-Term Rental Deals in Palm Beach County?. soflocoastalgroup.com
What lenders love to see (your prep checklist)
Money & docs
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Proof of funds for down payment + closing + reserves
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Two months of bank statements (personal/business)
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Credit report pulled early (so surprises don’t pop up mid-escrow)
Property & income
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A quick revenue pro forma (ADR, occupancy, seasonality)
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Insurance quotes (wind + flood if required)
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HOA/City STR rules in writing
Need help tuning your underwriting? My Investors hub walks through our “purchase-to-profit” process:
👉 SoFlo Coastal Stays — Investors (we help source, analyze, finance, design, and manage). soflocoastalgroup.com
Picking the right loan for your plan
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Maximizing personal use? Consider second-home financing (as allowed), but be honest about your renting plans.
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Optimizing for cash flow? DSCR or conventional investment loans keep it simple and scalable.
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Going condo near the beach? Check warrantability on day one; have a portfolio/DSCR backup.
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Scaling a portfolio? Mix strategies: HELOC for down payment + DSCR for acquisitions.
When you’re ready to start shopping, set up a live search so you see promising homes the minute they list:
👉 Search Homes. soflocoastalgroup.com
Exploring areas? Peek at a few local guides to feel out flavor and pricing:
From funding to five-stars: we can run the play
Once you’re under contract, our team can handle setup and management so you launch like a pro (design, stocking, pricing, guest ops, compliance).
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Learn more about our Airbnb Property Management: SoFlo Coastal Group Management. soflocoastalgroup.com
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Curious about the full service? Here’s our overview: STR Management. soflocoastalgroup.com
And if you’re still choosing your market mix, this is a helpful read:
FAQs (quick, helpful, Florida-friendly)
Can I use a second-home loan and still rent on Airbnb?
Sometimes, but second-home loans assume substantial personal use; some lenders/notes restrict frequent STR activity. If income is the primary goal, look at investment or DSCR financing.
Do lenders count Airbnb income to qualify?
On conventional investment loans, underwriters can use market rent from the appraisal; with DSCR, the rent coverage drives approval. Policies vary—your pre-approval will map it out.
How much down do I need?
It depends on loan type, property type, and reserves. Plan for a meaningful down payment and a healthy cushion—Florida insurance and HOA costs make solid reserves a superpower.
Are condos harder to finance?
They can be. Buildings with hotel-like operations or weak financials may be non-warrantable for conventional loans. Portfolio or DSCR lenders are often the workaround.
Let’s make your Florida STR happen 🌴
I help investors source, finance, design, and manage top-performing short-term rentals across Palm Beach County and beyond. Text or call and I’ll map your best financing lane and a shortlist of properties to match.
Call/Text: 732-754-9323
Set up your search or explore our Investors page. soflocoastalgroup.com+1
P.S. Want a deeper dive on strategy? Start here: Cash Flow vs. Appreciation (Florida STRs) and How to Buy a Profitable STR.
