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.
If you're buying your first or fifth coastal Florida rental property, the most important decision isn't the market, it's the financing stack. Here's the full playbook, from cash-equivalent close to exit.
Goal: close fast, lock in 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. Up to 80 to 85% LTC. 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. 70 to 80% LTC. 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.
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. Streamlines 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 70 to 75% of 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 | Down | DSCR | Cash Flow |
|---|---|---|---|---|
| Florida Keys STR Islamorada · 25% down DSCR |
$850K | $213K | 1.25× | +$1,200/mo |
| Treasure Coast LTR Stuart · 20% down conforming |
$425K | $85K | , | +$300/mo |
| Lower Keys STR Cudjoe Key · 30% down DSCR |
$1.1M | $330K | 1.30× | +$2,400/mo |
| Naples Condo Naples · 25% down conforming investor |
$675K | $169K | , | +$400/mo |
| Marathon STR Marathon · 35% down DSCR (ins. heavy) |
$1.4M | $490K | 1.18× | +$2,000/mo |
| Portfolio Total | $4.45M | ~$1.29M | $6,300/mo |
Illustrative only. Rates, insurance, and DSCR ratios vary by property and lender. Numbers current as of mid-2026 and subject to market conditions.
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.
Florida coastal insurance has risen 5 to 8% per year since 2021. A property that DSCR-qualifies today may not in year 2 if you underwrite today's insurance cost as static.
Hold 3 to 6 months 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 CallI 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.
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Book a strategy session. We'll map the financing stack from acquisition through exit.
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