Six mistakes that ruin a Florida investment

1. Buying on gross yield

Rent over price is a ranking tool. It is not a return, and in Florida the gap between the two is wider than almost anywhere.

Property tax without homestead, insurance at Florida prices, the association fee, vacancy, management and maintenance all come out after the gross number. A 9% gross yield here routinely lands near 3% net. If the decision was made on the gross figure, the decision was made on the wrong number.

2. Budgeting insurance from last year’s premium

Or worse, from the seller’s premium, which was written on a different roof and a different claims history.

Insurance is the single most volatile line in a Florida pro forma. Get a quote on that specific property, in your name, before the inspection period ends — and then budget the renewal above it, not at it.

3. Using the seller’s tax bill

It resets when the property sells, and on an investment property there is no homestead exemption to soften it.

A seller who has owned since 2015 under the 3% cap may be paying half of what you will. Ask the county property appraiser for the estimate for a new owner — every Florida county publishes one — and run it in our property tax calculator with the right county.

4. Not reading the reserve study

In a condominium, the association’s finances are part of the asset. Since the 2022 reforms they are also a legal obligation you inherit.

A building with thin reserves is a special assessment waiting for a date. The milestone inspection report and the structural integrity reserve study are the two documents that tell you whether that date is soon, and both are obtainable before you buy. Skipping them is how an 6% yield becomes a $40,000 bill.

5. Assuming you can rent it the way you plan to

The declaration can impose a minimum lease term and the city can restrict short-term rental. Either one can eliminate the business model.

This is checkable in an afternoon and it is skipped constantly, usually because the projection came from someone who assumed rather than checked.

6. Buying for appreciation and calling it investing

If the numbers only work when the property is worth more later, the property is not the investment — the forecast is.

Appreciation is welcome and nobody can promise it. A property that covers its costs while you hold it survives a flat decade; one that does not needs the market to cooperate on a schedule. Run your case at 0% appreciation. If it still works, you have an investment. If it does not, you have a position.