Miami's large-balance rentals are often condos in Brickell, Edgewater or Miami Beach, and single-family homes in Coral Gables, Coconut Grove and Pinecrest. For both, insurance and HOA costs can move a DSCR loan as much as the rent does.
In short: LendingStreet finances $1M+ Miami rentals with DSCR loans that qualify on the property's rent, with no W-2s or tax returns and LLC borrowers allowed. Loans start at $150,000 with no stated maximum, rates start at 6.125% for well-qualified borrowers, and purchases go up to 80% LTV, often less on large balances. On condos, the building matters as much as the unit: lenders review the association's reserves, structural inspections and insurance under Florida's post-Surfside condo laws. On houses, wind and flood insurance are usually the biggest swing in the ratio.
Both can work. They fail for different reasons, so it helps to know which hurdle you are facing.
A $1M+ condo has HOA dues in the payment and a building review on top of the unit appraisal. A $1M+ house has no HOA in many neighborhoods, but carries its own wind and flood insurance, a pool and a roof that insurers will ask about.
| Item | Luxury condo | Single-family home |
|---|---|---|
| Typical areas | Brickell, Edgewater, Downtown, Miami Beach, Sunny Isles, Aventura | Coral Gables, Coconut Grove, Pinecrest, Miami Shores, Key Biscayne |
| HOA in the payment | Yes, often large | Sometimes, in gated communities |
| Insurance you carry | Interior (HO-6) policy; building covered by master policy | Full dwelling policy with wind; flood if required |
| Building review | Yes: reserves, inspections, litigation, rental share | No |
| Short-term rental | Often restricted by the condo rules | Depends on city zoning and HOA |
| Leverage on a large balance | Often lower, especially if non-warrantable | Varies by program |
After the 2021 Champlain Towers South collapse in Surfside, Florida passed laws requiring milestone structural inspections for many condo buildings three stories and taller, structural integrity reserve studies, and full funding of reserves for key structural items. Associations can no longer simply vote to skip those reserves.
For investors, that has meant higher monthly dues and, in many older buildings, large special assessments to pay for repairs. Lenders now ask whether the milestone inspection is done, what it found, whether the reserve study is complete and whether any assessments are pending or planned.
A building with open structural issues or a big unfunded repair can be hard to finance until the work is underway. Newer buildings and those that have completed their inspections and funding are generally easier. Ask the association for these documents before you sign a contract.
Miami-Dade is exposed to hurricanes and, in many neighborhoods, to flooding. A single-family rental needs a dwelling policy that includes wind coverage, and if the property is in a FEMA special flood hazard area, flood insurance is generally required. Much of Miami Beach and many waterfront areas fall in mapped flood zones.
Florida's private insurance market has been volatile, and some owners end up with Citizens Property Insurance, the state-created insurer, as their option. Premiums on older homes without a newer roof, impact windows or opening protection can be much higher than on updated homes.
For condos, the master policy covers the building and you carry an interior policy, but the cost of the master policy flows through the HOA dues. Either way, insurance hits the DSCR math. Get real quotes before you commit.
This example is illustrative and not a quote. An investor buys a condo for $1,250,000 that leases for $9,000 a month on a 12-month lease. Taxes are budgeted at $1,150 a month, the interior insurance policy at $200 and HOA dues at $1,000.
At 70% LTV the loan is $875,000. At a sample rate of 7.5% on a 30-year fixed, principal and interest is about $6,118. The total payment is about $8,468, and DSCR is $9,000 divided by $8,468, or about 1.06x.
Now say the building passes a special assessment for structural repairs that adds $600 a month for the next several years. The payment becomes about $9,068 and DSCR falls to about 0.99x, just under the 1.0x standard minimum. That is why lenders ask about planned assessments before closing.
| Item | Before assessment | With $600 assessment |
|---|---|---|
| Loan amount (70% LTV) | $875,000 | $875,000 |
| Principal and interest | $6,118 | $6,118 |
| Taxes and insurance | $1,350 | $1,350 |
| HOA dues and assessment | $1,000 | $1,600 |
| Total monthly payment | $8,468 | $9,068 |
| DSCR at $9,000 rent | About 1.06x | About 0.99x |
Our STR DSCR program qualifies on projected revenue, with rates from 6.49% for qualified borrowers. The catch in Miami is legality. Miami Beach restricts short-term rentals in most of its single-family neighborhoods and in many condo districts, and the City of Miami has its own rules. Many condo associations set minimum lease terms or cap how often a unit can be rented, regardless of city law.
Some buildings are set up specifically for short-term use, and condo-hotels have their own financing rules. Before you count on nightly income, confirm the city zoning, the building's rules and any required registrations. If the property cannot legally operate as an STR, plan on long-term rent.
When a Miami deal comes in tight, the fix is usually on the cost side rather than the rent side. Each lever below changes the payment the rent has to cover.
Compare the options on the same property, at the same rent, so you can see which one moves the ratio most for the least cash.
Florida's homestead protections apply to owner-occupied homes. Investment properties are non-homestead, and their assessed value generally resets after a sale. If the seller had a homestead exemption, your tax bill may be much higher than theirs.
Use an estimate based on your purchase price, not the seller's bill, when you run the ratio. The Miami-Dade Property Appraiser's website has an estimator that can help, and your title company can confirm.
Condo investors tend to focus on Brickell, Edgewater, Downtown and Wynwood-adjacent towers, plus Miami Beach, Sunny Isles Beach, Bal Harbour and Aventura. Single-family investors look at Coral Gables, Coconut Grove, Pinecrest, Miami Shores and Key Biscayne, and north into Fort Lauderdale and the rest of Broward County.
Tenant demand at the high end includes relocating finance and tech workers, international residents and seasonal renters. Florida has no state income tax on wages, which has drawn many higher-income renters. Rents vary widely by building and street, so rely on recent leases in the same building or block.
Broward and Palm Beach counties are part of the same conversation for many buyers. Fort Lauderdale, Hollywood, Boca Raton and West Palm Beach offer luxury condos and single-family homes with their own building rules, city STR ordinances and insurance profiles. The same checklist applies: building documents for condos, wind and flood quotes for houses, and a tax estimate based on your price.
Across Miami-Dade, loans from $500K to $1M are common for condos in Brickell, Edgewater, Downtown and Sunny Isles Beach, townhomes in Doral and Kendall, and single-family rentals in Miami Gardens, Hialeah, Cutler Bay and Homestead.
On these balances, leverage is often nearer the program maximums of 80% LTV on purchases and 75% on cash-out, and reserves are often lighter than on $1M+ loans, though both vary by program. The 1.0x standard minimum DSCR still applies.
The Miami checks stay the same at a smaller balance. Condo building review, HOA dues and any special assessment still go into the file, and wind and flood insurance on a single-family home count in the payment.
Large balances get a closer look, and some programs require a second appraisal or a more detailed review. Reserve requirements are often higher too. A complete file shortens the process.
LendingStreet is an investment property financing company. We finance business-purpose DSCR loans on non-owner-occupied property with a 620 minimum credit score, 30-year fixed options and up to 75% LTV on cash-out, often lower on large balances.
Send the address, building name for a condo, rent and target leverage. The financing team will flag building or insurance issues early and come back with 2-3 options, including non-warrantable condo and sub-1.0 DSCR programs where they fit.
Sometimes. The assessment usually counts in the payment, and the lender will want to know what it pays for. Large unfunded structural repairs can make a building hard to finance until the work is underway.
It is a condo whose building falls outside standard guidelines, for example because of litigation, heavy investor ownership, a single owner holding many units or reserve issues. Some programs finance these units, often at lower leverage.
If the property is in a FEMA special flood hazard area, flood insurance is generally required. Many coastal and waterfront Miami properties are in mapped zones, so check the map early.
Only if the property can legally operate as a short-term rental. Miami Beach restricts STRs in many areas, and condo rules can ban them. Confirm with the city and the association before relying on STR revenue.
Our DSCR programs have no stated maximum. Loans start at $150,000, and larger balances are reviewed and priced case by case. Higher scores, strong reserves and experience owning rentals all help on a large Miami loan.
Investment properties do not get homestead protections, and assessed values generally reset after a sale. Base your numbers on your purchase price.
Yes. Cash-out goes up to 75% LTV, often lower on large balances, and the rent must still clear the program minimum at the new payment. Condos still need to pass the building review.
Ask the financing team about your specific situation. Eligibility rules for non-U.S. borrowers vary by program, and documentation requirements differ.
No. LendingStreet finances non-owner-occupied investment property only, so second homes and personal-use properties do not qualify.
Yes. DSCR loans start at $150,000 with no stated maximum, and $500K to $1M loans are common for Brickell and Edgewater condos, Doral and Kendall townhomes, and single-family rentals across Miami-Dade.
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