Real estate investing isn't one loan, it's a stack. Here's how I structure financing across the full lifecycle of a coastal Florida investment property, from offer to exit.
The best way to finance a coastal Florida investment property is to match the loan to the stage: DSCR or bridge to buy fast, DSCR or portfolio debt to hold, and a 1031 or cash-out refi to exit. With the 30-year rate at 7.28% on October 1, 2026, the highest since November 2023, the rent side of the DSCR math matters more than it did in July. Here's the full playbook, from cash-equivalent close to exit.
Goal: a clean offer that locks in the price. In competitive coastal markets (Florida Keys, Sarasota, Palm Beach), sellers don't wait. Your financing speed is your offer strength. Three modes:
For competitive offers. A DSCR lender issues a commitment within 14 days, closes in 21. Submit a "subject to financing" letter that reads like cash. I have lenders that consistently deliver this timeline on FL coastal properties without requiring a rate lock in day 1.
9 to 24 month interest-only term. Financing is sized to the purchase and renovation cost. Use when: you need to act faster than DSCR allows, the property needs renovation before it's rentable, or you're in a 1031 exchange deadline. Exit strategy = DSCR refi once property is stabilized.
7 to 14 day close. Financing is sized to the purchase cost. Asset-based, minimal income documentation. Cost: 9 to 13% rate + 2 to 4 points. Use only when speed has concrete dollar value, which it often does when you're competing for under-market deals. Not a long-term hold option.
After acquisition, renovation, and lease-up: exit bridge/hard money into permanent financing. The longer you stay in short-term debt, the more it costs.
Most DSCR lenders require 90 days seasoning post-bridge close. Some allow "delayed financing" with no seasoning if the acquisition was all-cash. Qualifying metric: monthly rent ÷ PITIA. Most lenders want 1.10 to 1.25x or better. Florida Keys STRs often exceed 1.30 to 1.40x at current pricing and booking rates. See the full breakdown on my DSCR loan guide, or run your own numbers with the DSCR calculator.
Up to 10 properties financed under your personal name via Fannie Mae. Better rate than DSCR, but requires full income documentation and Schedule E analysis. Your accountant's write-off strategy may actually hurt you here, if the properties show paper losses on tax returns, conforming qualification gets harder each year.
Single loan secured by multiple properties. Simplifies servicing, often gets better pricing at scale. Common structure for serious operators with 10+ doors who want to stop managing 10 separate mortgage payments. Cross-collateral risk = losing one property threatens others, so structure carefully.
Defer capital gains by purchasing a replacement property within 180 days (45-day identification, 180-day close). You need a qualified intermediary before the sale closes, you cannot touch the funds. Bridge financing on the replacement property is common to close before tax-deferred exchange funds arrive from the QI.
Pull a large share of the new appraised value as cash, keep the property, and redeploy capital into the next acquisition. This is the "infinite returns" structure, if the property has appreciated 40%+ and you can extract enough equity to cover the next down payment, you've effectively gotten the second acquisition for free. Model the new DSCR carefully before pulling cash: taking equity up often raises the payment enough to push DSCR below 1.0 if rents haven't kept pace.
If insurance or regulatory risk has shifted, a new STR ordinance, FEMA map revision, or post-hurricane insurance non-renewal, sometimes liquidating is the right call. We model the after-tax exit, including depreciation recapture at 25% federal, before the listing goes live. Many clients are surprised how much recapture eats into apparent gains.
Here's a real structure I've helped clients build. Numbers are representative, not guaranteed:
| Property | Price | Loan | DSCR | Cash Flow |
|---|---|---|---|---|
| Florida Keys STR Islamorada |
$850K | DSCR | 1.25× | +$1,200/mo |
| Treasure Coast LTR Stuart |
$425K | Conforming | n/a | +$300/mo |
| Lower Keys STR Cudjoe Key |
$1.1M | DSCR | 1.30× | +$2,400/mo |
| Naples Condo Naples |
$675K | Conforming investor | n/a | +$400/mo |
| Marathon STR Marathon · insurance heavy |
$1.4M | DSCR | 1.18× | +$2,000/mo |
| Portfolio Total | $4.45M | Mixed | $6,300/mo |
Illustrative only. Rates, insurance, and DSCR ratios vary by property and lender. Property mix and DSCR ratios are examples, and the rate section below shows how October 2026 pricing changes the math. Subject to market conditions.
Three things moved this year, and each changes how you underwrite a coastal deal.
Freddie Mac's weekly survey put the 30-year fixed at 7.28% on October 1, 2026, up from 7.03% the week before and the highest reading since November 2023. The 15-year was 6.60%. DSCR loans are priced off the same market and commonly run about half a point to a point and a half above conventional, depending on DSCR, credit, LTV and property type. I can't quote you a rate here, but you should underwrite with today's market, not the July one.
Here is what a quarter-point swing looks like on an illustrative $637,500 loan on a Keys STR (30-year fixed). Taxes, insurance and HOA are assumed at $1,900 a month for this example only.
| Rate | Principal + interest | PITIA | Rent for 1.25x | DSCR at $8,000 rent |
|---|---|---|---|---|
| 7.25% | $4,349 | $6,249 | $7,811 | 1.28x |
| 7.75% | $4,567 | $6,467 | $8,084 | 1.24x |
Illustrative math, not a rate quote or a commitment to lend. Run your own property in the DSCR calculator.
The takeaway: half a point costs about $218 a month on this loan and drops the DSCR from 1.28x to 1.24x, which can move a deal across a lender's 1.25x pricing line. Check your rent number against that line before you write the offer. If you are above the conforming limit, also read my 2026 Florida jumbo loan limits post, and if DSCR is new to you, start with what a DSCR loan is.
Down payment on most 2026 DSCR programs depends on credit, the DSCR, and loan size. The smallest down payment usually goes to borrowers with a 700-plus credit score, a DSCR at or above 1.0, and a loan under $1.5 million. Credit starts at 620, and 720 to 740-plus is where the best pricing lives, which matters most on loans over $1 million. Coastal and seasonal STR properties often need a larger down payment because lenders price in vacancy and insurance risk. Reserves now commonly run 3 to 12 months of PITIA per property rather than a flat 6. None of that kills a good deal, it just means you bring the right down payment and cash cushion to the table.
From 2021 to 2024, Florida coastal insurance was the number one deal-killer, rising fast enough to push a property below break-even in a single renewal cycle. In 2026 the market is settling. Citizens Property Insurance cut rates roughly 8.7% statewide at spring 2026 renewals (about 14% in Miami-Dade and Broward), and more than a dozen private carriers have re-entered the state since the 2022 and 2023 legal reforms. That said, Florida still carries the highest average premiums in the country, and coastal South Florida homes commonly run $5,800 to $7,300 or more per year. So the move is not to assume insurance keeps climbing 8% a year, it is to pull a real bindable quote on every property before you underwrite the DSCR. For a fast first pass, run the numbers through my coastal insurance estimator.
If your tax returns show real income and the property is under the 2026 conforming limit ($832,750 in most Florida counties, $990,150 in Monroe County and the Keys), a conforming investor loan usually prices better than DSCR, up to 10 financed properties in your personal name. The trade-off: full income docs, Schedule E analysis, and the aggravation of paper losses from depreciation working against you as your portfolio grows. Most investors past 4 or 5 doors drift toward DSCR and portfolio loans for the LLC vesting and the income-based qualification, even at a slightly higher rate.
Every financing decision should be made in context of the full portfolio, which lender, what conforming count you have left, tax exposure on cash-out.
Coastal Florida premiums rose sharply from 2021 to 2024, then began stabilizing in 2026 (Citizens cut about 8.7% statewide at spring renewals). Still, coastal South Florida commonly runs $5,800 to $7,300-plus a year. Get a real bindable quote before you underwrite DSCR, not a rough estimate.
Hold 6 months of PITIA per coastal property. A direct hit can zero out STR bookings for 1 to 3 months and still require mortgage payments.
Blanket loans improve cash flow but eliminate flexibility. You can't sell or refinance one property without lender consent on the whole package.
If you're 1 to 10 doors deep in coastal Florida and want a strategy session on structuring your next 5 acquisitions, from acquisition to exit, book a call. No credit pull for initial review.
Book Investor Strategy CallDSCR (Debt Service Coverage Ratio) loans qualify based on rental income rather than personal income or tax returns. The ratio is monthly rent divided by PITIA (principal, interest, taxes, insurance, HOA). A DSCR of 1.0 means rent exactly covers the loan payment; most lenders want 1.10 to 1.25 or better. For coastal Florida STRs, AirDNA or a 12-month operating P&L is used in place of a lease.
With DSCR financing, 21 to 30 days with a pre-committed lender. With bridge or hard money, 7 to 14 days. A DSCR loan with a 21-day commitment letter is often competitive with cash offers. I have lenders that consistently deliver this timeline on Florida coastal properties.
Yes, this is something we do consistently. Florida Keys STRs are licensed through Monroe County's ROGO system, and that county license is required documentation. The loan qualifies on AirDNA projected income or a 12-month P&L. DSCR ratios are achievable in the Keys because of strong STR revenues.
Lenders typically require 3 to 12 months of PITIA per property. For coastal Florida I recommend holding 6 months per property, because hurricane season can zero out STR bookings for 1 to 3 months in a bad storm year. Reserves are separate from down payment and closing costs.
DSCR down payment depends on the program, your credit, and the property. The smallest down payment usually goes to borrowers with a 700-plus credit score, a DSCR at or above 1.0, and a loan under $1.5 million. Coastal and seasonal STR properties often need a larger down payment. Credit starts at 620, but 720 to 740-plus gets the best pricing, especially on loans over $1 million.
Yes. DSCR and portfolio loans are commonly vested in an LLC, which is one of their advantages over conforming financing. Conforming Fannie Mae loans must be in your personal name. If you plan to hold in an entity, say so up front so the loan is structured that way from the start.
The picture changed in 2026. After sharp increases from 2021 to 2024, the market is stabilizing. Citizens Property Insurance cut rates about 8.7% statewide at spring 2026 renewals, and more than a dozen private carriers have entered since the 2022 and 2023 reforms. Florida still has the highest average premiums in the country, and coastal South Florida homes commonly run $5,800 to $7,300 or more per year, so insurance is still a large line item you must underwrite carefully.
For 2026 the baseline one-unit conforming limit in most Florida counties is $832,750. In Monroe County and the Florida Keys it is $990,150. Above those limits you move into jumbo or DSCR financing. Most coastal investors use DSCR or portfolio loans anyway, because they qualify on rental income and can be held in an LLC.
Freddie Mac's 30-year fixed average was 7.28% on October 1, 2026, the highest since November 2023. DSCR loans commonly price about half a point to a point and a half above conventional, depending on DSCR, credit score, LTV and property type, so many coastal investors should expect pricing above that level. Rates change daily and this is not a quote.
Run the deal at today's rate and see if it works. If the DSCR clears your lender's line at today's pricing, you have a buffer if rates fall and a refinance option later. If it only works at a rate that does not exist yet, the deal is too thin. Waiting also carries its own cost, since coastal prices and insurance can move while you wait.
Want to see the cash flow before you make an offer?
Run the Investment ROI CalculatorI specialize in jumbo, DSCR, STR, and non-QM lending across coastal Florida, Florida Keys, Sarasota, Naples, and Palm Beach. I work with investors who are building multi-property coastal portfolios and need a broker who understands the insurance, DSCR, and entity structure landscape.
(305) 424-9005 · eli@themortgagedock.comDSCR, bridge, and portfolio lending for coastal FL real estate investors.
Full breakdown of DSCR qualification, ratios, and STR income documentation.
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