Listings sell the upside. Your job before an offer is to find the downside: every monthly cost the property will carry once it's yours and leased.
Start with realistic rent
Use recently leased comparable homes nearby, not asking prices or a countywide average. A Free Rental Analysis gives you a market-informed starting number.
Then count every monthly cost
- Mortgage principal and interest
- Property taxes. A rental doesn't get the homestead cap, and the assessed value typically resets after a sale, so the seller's tax bill can understate yours
- Insurance. Florida premiums, including wind coverage, vary widely by roof age and location. Get a quote before you offer, plus flood coverage if applicable
- HOA or community fees, and any rules that restrict leasing
- Property management
- A vacancy allowance (5–8% of rent is a common planning figure)
- Maintenance and capital reserves for the roof, HVAC, and water heater (5–10% of rent)
A worked example
- Rent: $2,100/month
- Mortgage P&I: $1,150
- Property taxes: $300
- Insurance: $210
- Management: $150
- Vacancy allowance (6%): $126
- Maintenance and capital reserves (8%): $168
- Total monthly cost: $2,104, so cash flow is about −$4/month
The rent here beats the mortgage by $950, yet the property roughly breaks even once everything is counted. That doesn't make it a bad deal, since appreciation and principal paydown matter too. But it should be a deliberate choice, not a surprise.
The figures above are illustrative only, not a forecast for any property. Try the ROI Calculator with your own numbers.
Beyond the monthly math
- Roof and HVAC age, which drive both repairs and insurability in Florida
- Flood zone designation
- HOA leasing restrictions and minimum lease terms
- Tenant demand for the size and location
This article is general information, not investment, tax, or financial advice. Consult licensed professionals before buying.
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