House hacking in Florida

[Steven Nieves]

Good morning everyone, 

I'm planning a move to Florida within the next year or so. The plan is to find a duplex and house hack. As of right now I am planning on going the FHA route, living in one unit while renting out the other until I am ready to refinance and repeat the process. Any advice that could possibly make my life easier would be greatly appreciated. Location advice is also welcomed. Right now I am looking in Jacksonville, Tampa, and MAYBE Orlando.

[Robert Collins]

Hi Steven,

That's an exciting plan to move to Florida and house hack a duplex! Going the FHA route and living in one unit while renting out the other can be a great strategy to start your real estate journey. Here are some tips and advice to make your life easier:

1. Research the FHA Loan Requirements: Make sure you understand the specific requirements and qualifications for an FHA loan, including credit score, debt-to-income ratio, and down payment. Familiarize yourself with the loan limits and any additional costs associated with an FHA loan.
2. Property Analysis: Conduct thorough market research in the areas you're considering, such as Jacksonville, Tampa, and Orlando. Analyze property prices, rental rates, vacancy rates, and neighborhood trends. Look for emerging neighborhoods with potential for growth and solid rental demand.
3. Local Laws and Regulations: Understand the landlord-tenant laws in Florida and specifically in the cities you're interested in. Familiarize yourself with eviction processes, security deposit regulations, and any local ordinances that may affect rental properties.
4. Networking and Local Connections: Reach out to local real estate investor associations, forums, and networking events in the areas you're considering. Connect with experienced investors who can offer insights into the local market, property management companies, and potential deals.
5. Property Management: Determine whether you'll manage the property yourself or hire a property management company. If you're planning to manage it yourself, familiarize yourself with landlord responsibilities, maintenance, and tenant screening processes. Alternatively, research reputable property management companies that can handle the day-to-day operations.
6. Financing Options for Refinancing: While FHA loans are a great starting point, explore different financing options for refinancing in the future. Speak with local lenders to understand the available loan products, interest rates, and terms that can maximize your investment strategy.
7. Analyze Cash Flow: Calculate your expected cash flow carefully, considering all expenses such as mortgage payments, property taxes, insurance, repairs, and vacancies. Ensure that the rental income from the other unit covers these costs, leaving you with positive cash flow.
8. Location Considerations: Jacksonville, Tampa, and Orlando are all popular areas in Florida with different pros and cons. Research factors like job growth, rental demand, proximity to amenities, and potential for property appreciation. Visit these areas if possible to get a better feel for the neighborhoods and make informed decisions.

Remember, thorough research, due diligence, and building a solid team will be key to your success. Stay connected with local real estate professionals and investors to gain valuable insights. Best of luck with your move and your real estate investing journey in Florida!

Warm regards,