Florida STR And Small Multifamily: Get Deals Sourced

Thinking about Florida for your next income property but not sure where real opportunity lives right now? You are not alone. Florida’s short-term rentals and small multifamily assets can deliver strong returns, yet the best deals go fast and the rules vary block by block. In this guide, you will learn exactly where to look, how to underwrite, what to check for compliance and insurance, and the smartest ways to source both on-market and off-market deals. Let’s dive in.

Florida investing at a glance

Florida draws steady interest for two reasons. First, tourism and seasonal travel fuel strong short-term rental demand in select submarkets. Second, population growth and retiree migration support stable long-term rental demand for small multifamily.

Here is how the two strategies differ:

• STRs rely on average daily rate and occupancy. They can produce higher gross revenue per unit, yet they require active management and face seasonality.
• Small multifamily focuses on monthly rents and occupancy stability. You trade some upside for lower turnover and operational intensity.

Where STRs shine in Florida

• Coastal and resort towns, barrier islands, and Panhandle beach communities often post strong seasonal ADR and occupancy. These locations can also bring stricter rules and higher insurance costs, so verify both early.
• Central Florida near major theme parks benefits from year-round visitation and broad STR demand. Many neighborhoods are purpose-built for vacation rentals.
• Secondary coastal towns that attract weekenders can produce strong seasonal cash flow when you price smart and plan for seasonality.

When small multifamily wins

• Growing metro areas such as Tampa Bay, Jacksonville, and parts of South Florida suburbs often favor long-term rentals. You will find more stable occupancy and tenant demand.
• Urban infill and employment corridors can balance appreciation potential with steady rent rolls.

Rules, taxes, and insurance you must verify

Florida’s regulatory landscape is hyper local. Before you write an offer, confirm that your intended use is legal and insurable.

Local permits and HOA rules

• Many cities and counties require STR registration, safety inspections, occupancy and parking standards, and noise rules. Rules change frequently, so confirm the current code for the exact address.
• Condos and HOAs often restrict STRs or set minimum lease terms. Review declarations, bylaws, amendments, and recent meeting minutes.

Taxes and compliance

• Most STRs must collect and remit transient rental taxes and applicable sales tax. Registration and remittance can occur at both county and state levels.
• Long-term small multifamily follows standard property tax treatment. Florida has no state income tax, but federal rules for rental income, depreciation, passive activity, and 1031 exchanges still apply. Consult a CPA who understands rental and STR taxation.

Insurance and climate risk

• Expect meaningful underwriting for windstorm and flood exposure. Premiums and carrier availability vary by county and even neighborhood.
• Many standard homeowner policies exclude STR activity. Secure landlord or STR endorsements that reflect actual use.
• Properties in flood zones often require flood insurance. Elevation, roof age, and mitigation features can impact pricing.

Pre-offer compliance checklist

• Verify municipal STR permit eligibility and any pending policy changes.
• Review HOA or condo documents for rental limits and STR language.
• Confirm transient tax registration requirements and the process to remit.
• Obtain insurability feedback and quotes that reflect your planned use.

Financing options that fit your plan

You have several paths to capitalize a Florida STR or small multifamily. The right option depends on unit count, condition, and whether you will owner-occupy.

2–4 units

• Owner-occupants can access programs that allow lower down payments on 2–4 unit properties. Living in one unit while renting the others can improve debt coverage.
• Investor loans for 2–4 units typically require larger down payments and stronger reserves. Shop portfolio lenders that understand local rental dynamics.

5+ units

• Five or more residential units are commonly financed as commercial multifamily. Expect different underwriting, debt terms, and diligence.

DSCR, bridge, and private capital

• DSCR loans underwrite to property income over your personal income. They can be a fit for STRs and long-term rentals when traditional underwriting falls short.
• Bridge, hard money, private lenders, and seller financing can help if you plan value-add renovations or need speed to close.

Plan for capital beyond purchase

• STRs require furnishings, durable finishes, and guest-ready upgrades.
• Budget for licensing fees, safety items, and potential code retrofits.
• Hold healthy reserves for seasonality, repairs, hurricane deductibles, and potential insurance changes.

Your Florida deal-sourcing playbook

Winning deals comes from setting tight criteria and working multiple channels at once.

On-market channels

• Use MLS filters for multi-unit and income-producing properties. Many 2–4 unit deals never hit commercial platforms.
• For 5+ units, also monitor commercial portals that focus on small multifamily.

Off-market and networking

• Build relationships with investment-focused agents who know where STRs are permitted and where long-term demand is strongest.
• Connect with local property managers and vacation rental managers. They often know owners who plan to sell.
• Engage wholesalers and REIA groups. Ask for small multifamily and STR-friendly inventory in your target ZIPs.
• Drive target neighborhoods and mail owners who hold properties that match your criteria.

Auctions and distress

• Florida counties run foreclosure and tax deed auctions. Procedures vary by county, so learn the local process and title implications before bidding.

Tactical five-step sequence

1. Define submarkets by strategy. Choose tourist-driven STR corridors and separate stable long-term rental zones.
2. Pull STR metrics for ADR, occupancy, and seasonality along with long-term rent comps for your short list.
3. Build a small team of an investment-savvy agent, property manager, insurance broker, loan officer, and a CPA.
4. Set alerts on MLS and commercial portals, and keep constant contact with wholesalers and managers.
5. Pre-clear financing and insurance so you can move quickly when the right asset hits your inbox.

Underwrite with confidence

Underwrite to reality, not a wish list. Treat STRs and long-term multifamily differently.

STR underwriting must-haves

• Revenue inputs: average daily rate, occupancy, and seasonality by month.
• True operating costs: cleaning and turnover, restocking, platform fees, marketing, utilities, lawn and pool care, and local licensing.
• Capital items: furnishings, smart locks, safety gear, and durable linens.
• Model three cases. Run conservative, base, and upside scenarios to see your break-even occupancy and cash-on-cash.

Small multifamily underwriting must-haves

• Income inputs: current rent roll, market rent comps, unit mix, and realistic vacancy.
• Expenses: property taxes, insurance, utilities, common-area maintenance, repairs, management, and reserves.
• Metrics to track: NOI, cap rate, gross rent multiplier, DSCR, and payback period.

Pro tips for both

• Normalize expenses across seasons for STRs and across turns for long-term rentals.
• Test debt terms and interest rate changes to understand sensitivity.
• Use historical bills and vendor quotes, not guesses, for insurance and utilities when possible.

Due diligence checklist before you offer

• Title and ownership: search for liens, code violations, and special assessments.
• Zoning and permitted use: confirm both STR eligibility and multifamily legality for the address.
• HOA and condo: obtain declarations, bylaws, amendments, and minutes to spot rental rule changes.
• Building systems: inspection, roof age, HVAC, plumbing, electrical, structural, and pest.
• Utilities: confirm meter setup, submetering, and who pays what.
• Insurance: review declarations and claims history.
• Income proof: rent roll, leases, bank statements, and historical P&L for long-term; booking history and monthly ADR and occupancy for STRs.
• Permits: verify certificates of occupancy and open permits.

Red flags that kill returns

• STR permit uncertainty or pending enforcement actions.
• HOA restrictions that limit or ban your intended use.
• Insurance nonrenewals or quotes that make the deal unworkable.
• Thin or missing documentation for income and expenses.
• Deferred maintenance that overwhelms your rehab budget.

Your 30-day action plan

• Week 1: Pick three Florida submarkets for each strategy you like, one STR-focused and two long-term focused. Define your buy box by price, unit count, and return targets.
• Week 2: Pull STR and rent data, talk to a local property manager in each submarket, and request insurance quotes for sample addresses that match your criteria.
• Week 3: Get pre-approved or line up DSCR or bridge funding. Set automated listing alerts and tell wholesalers and managers what to send you.
• Week 4: Tour active inventory, run full underwriting on your top three, and submit offers backed by clean terms and verified insurability.

Florida can deliver both lifestyle and income when you match the right strategy to the right submarket and move fast on verified opportunities. If you want a partner who can help you source, underwrite, negotiate, and hit the ground running on compliance and setup, connect with Levi Bennett today.

FAQs

Is STR investing allowed everywhere in Florida?

• No. Rules vary by city and neighborhood, and many HOAs or condos limit short stays. Verify municipal code and HOA documents for the exact property.

Can I finance a 2–4 unit property for STR use in Florida?

• Yes, but underwriting can be strict. Owner-occupied options exist, while DSCR and portfolio loans are common for investors planning STR operations.

How do I compare STR to a long-term rental on the same property?

• Estimate STR revenue with ADR and occupancy, subtract STR-specific expenses, and compare that NOI to long-term rent projections. Run conservative and base cases.

What insurance is required for a Florida STR?

• Many standard policies exclude STR activity. Secure a landlord or STR endorsement plus windstorm and flood coverage as needed for the location.

Which Florida submarkets are best for my strategy?

• It depends on your goals. Coastal and resort areas and Central Florida tourism zones favor STRs, while major metros and suburbs often favor small multifamily stability.