BRRRR in Florida

• Local codes & permits: Rehab timelines and requirements vary by city/county; confirm inspections early.
• Property taxes & insurance: Reassessments and rate shifts can impact DSCR; underwrite conservatively.
• Landlord‑tenant rules: Screening, deposits, notices, and eviction processes differ by jurisdiction.
• Contractor capacity: Validate bids, scope, and change order terms; keep tight draw schedules.
• Refi criteria: Seasoning, LTV, DSCR, and appraisal standards influence your timeline and proceeds.

Regulatory Landscape

• Landlord-friendly eviction process with 3-day notice for non-payment and streamlined court procedures.
• No statewide rent control; preemption laws prevent municipalities from implementing rent stabilization.
• Security deposits limited to two months' rent with 15-30 day return requirements depending on deductions.
• Homestead exemption provides significant property tax benefits for owner-occupied properties.
• Building permits streamlined in most major metros; hurricane code requirements increase construction costs.
• Lead paint and asbestos regulations standard; flood zone disclosure requirements in coastal areas.
• Short-term rental regulations vary dramatically by municipality; some cities have licensing caps or bans.

Financing Tips

• Model exit scenarios if ARV or rent land below target.
• Carry reserves for overruns and refinance delays.
• Lock rates strategically; track market movements.
• Document rehab thoroughly to support appraisal value.

Speak with Jake N Finance Group to size leverage and timeline.

Financing Benchmarks

• Target DSCR ≥ 1.30–1.40x due to hurricane risk and seasonal rental variations.
• Purchase LTV typically 70–80% given natural disaster exposure and market volatility.
• Refi LTV commonly 65–75% with lenders requiring hurricane insurance and updated appraisals.
• Seasoning requirements 6–12 months; coastal properties may require extended seasoning periods.
• Carry 15–20% rehab contingency due to hurricane code compliance and skilled labor shortages.
• Maintain 10–15 months reserves for seasonal variations and potential evacuation periods.
• Insurance costs significant factor; wind/hurricane coverage can represent 2-4% of property value annually.