Buying a Duplex in Florida: Live in One Side, Finance With the Other
Buying a duplex Florida first-time buyers and investors pursue works on FHA, VA and conventional loans with owner occupancy, counting the other unit's rent. The insurance, the tenant and the homestead split are the Florida details.
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Buying a duplex Florida first-time buyers and investors pursue works on FHA, VA and conventional loans when you live in one unit, and the other unit's rent helps you qualify.
Insurance, the tenant in place and the homestead split are the Florida details. Our guide to house hacking in Florida covers the strategy.
Owner-occupied programmes
FHA at 3.5 percent down on two units.
See our guide to FHA qualifications in Florida.
VA at zero down for eligible veterans.
Conventional at 5 percent down on a two-unit primary residence.
See our guide to 5 percent down conventional multifamily in Florida.
Counting the rent
75 percent of the other unit's market rent, from a lease or the appraiser's rent schedule.
See our guide to using rental income to qualify in Florida.
Added to your income for qualifying.
FHA and conventional both allow it on two units.
No landlord history required for a duplex at most lenders.
Investor purchase
Without occupancy: 20 to 25 percent down on conventional, or a DSCR loan.
See our DSCR page.
Both units' rent counts.
Investor pricing.
The owner-occupied route is far cheaper for the first one.
The appraisal
A two-unit appraisal with a rent schedule and an operating income statement.
See our guide to low appraisals in Florida.
Comparable duplex sales are thinner than single-family.
Older South Florida duplexes vary widely in condition.
The rent schedule drives the income calculation.
Insurance
A two-family dwelling policy, with a landlord component for the rented unit.
See our guide to Florida homeowners insurance cost.
The four-point covers the whole structure.
Older duplexes carry the same roof, panel and plumbing questions.
Tenants carry renters insurance.
The tenant in place
A duplex often comes with a tenant on one side.
See our guide to buying with tenants in place in Florida.
The lease transfers; the deposit transfers.
You must occupy the other side within sixty days.
A tenant in the unit you intend to occupy is a timing problem.
Homestead on half
Homestead applies to the unit you occupy, apportioned by the appraiser.
See our guide to the Florida homestead exemption.
The rented half is non-homestead with the 10 percent cap.
See our guide to the non-homestead cap in Florida.
Two caps on one parcel.
Zoning and legality
Confirm the duplex is a legal two-unit under zoning and permits.
See our guide to code violations on a purchase in Florida.
An illegal second unit cannot count for rent and may need removal.
The county property record shows the unit count.
Ask before the offer.
Separate meters
Separate electric meters simplify tenant billing.
A single meter means utilities in the rent.
Water is often shared.
Price the rent accordingly.
Adding a meter is a permit and a cost.
Taxes
Half the property is a rental on Schedule E with depreciation.
See our guide to depreciation recapture in Florida.
Mortgage interest and taxes split between the units.
The primary residence exclusion applies to your half at sale.
A tax adviser handles the allocation.
Association and CDD
Duplexes in planned communities carry dues.
See our guide to HOA and mortgage approval in Florida.
Rental rules apply to the rented half.
CDD fees are per parcel.
Read the documents.
Moving out later
After a year, rent both sides.
See our guide to long-term versus short-term rentals in Florida.
Homestead ends; the whole property becomes non-homestead.
The loan stays; occupancy rules were met.
Refinance to an investor loan only if needed.
FHA self-sufficiency
The self-sufficiency test applies to three and four units, not duplexes.
See our guide to the FHA self-sufficiency test in Florida.
Duplexes skip it.
One reason duplexes are the easiest first multifamily.
Fourplexes are harder on FHA.
Reserves
Lenders may require reserves on two-unit purchases.
See our guide to emergency funds for homeowners in Florida.
Vacancy on the rented side is your reserve's job.
A hurricane deductible on a larger structure.
Keep more than the minimum.
Down payment assistance
Florida Housing programmes allow two-unit primary residences on some first mortgages.
See our guide to Florida Housing down payment assistance.
Income limits apply.
Rental income may count toward the limit.
Check the programme.
A worked purchase
A first-time buyer takes an FHA loan on a duplex with a tenant on one side.
Seventy-five percent of the tenant's rent is added to income; the file qualifies.
The buyer moves into the vacant side and files homestead on that half.
The HUD handbook rules on two-unit occupancy were met.
After a year, the buyer moves and rents both sides.
Screening the tenant side
A new tenant after closing is screened by you.
Credit, income, background and rental history.
See our guide to Section 8 landlords in Florida for voucher tenants.
Florida law sets deposit and notice rules.
A written lease with a hurricane clause.
Where to start
Confirm the duplex is legal and get the lease and rent history.
Get an insurance quote on the two-family structure.
Then get a pre-approval with the rental income counted.