Buying a rental property in Florida offers a highly profitable investment opportunity. With year-round warm weather, stunning beaches, and no state income tax, Florida attracts millions of tourists and retirees, creating a strong demand for vacation rentals.
Capitalize on the state's booming tourism industry and thriving economy to generate steady passive income. Whether for short-term vacation stays or long-term tenants, a Florida rental property can be a smart, tax-efficient investment for foreign buyers.
Canadians Lead the Market!
In the past year, Canadians invested over $5.9 billion in U.S. real estate, making them the largest group of foreign buyers by transaction volume. The U.S. continues to be a prime destination for international investors looking for strong returns and lifestyle properties.
Highlights of What Canadians Can Expect with a U.S. Mortgage
✔ Low Down Payment – As little as 25% down
✔ Flexible Income Qualification – Use short or long-term rental income
✔ No Portfolio Limits – No cap on the number of properties owned
✔ Flexible Debt Servicing – Less than a 1:1 ratio allowed
✔ Higher Returns – Lower LTV and strong rental income potential
✔ Flexible Mortgage Terms – Interest-only options or up to 40-year amortization
✔ No U.S. Credit or Personal Income Required
✔ Down Payment Flexibility – Secured debt can be used without impacting ratios
✔ Multi-Unit Investment – Finance up to 24 units in one building
🚀 Maximize your U.S. real estate investment with tailored mortgage solutions!
Thinking about investing in rental properties but unsure whether Canada or the U.S. offers the best opportunities?
Our U.S. offices are dedicated to helping real estate investors secure the best loan programs to maximize returns.
FAQs for Canadians Investing in the U.S.
There are some documents that are usually required to obtain a Foreign National Loan. These include:
- A valid passport (Canadian or other)
- A current address
- Income documentation
- Bank statements and reference letters
- Income verification letter
- Bank statement of your down payment source
- 6 to 12 months of reserves that prove you can continue payments
A U.S. mortgage will give you more flexibility with respect to income qualification, no limits on your portfolio, flexible debt servicing and flexible mortgage terms when compared to options available in Canada. You would also not loose money in the conversion from Canadian to U.S. dollars.
Our sister company, Rateplicity, has offices in Florida. Florida is a great area for vacation homes or investment properties. Hot rental markets in Florida include Miami, Orlando, Tampa, Jacksonville, and Fort Lauderdale. There are also some hidden gems like Venice, Marco Island, and St. Petersburg.
Using a US-based lender to obtain financing means you will most likely be required to have a US bank account for the transfer of funds and mortgage payments. Having a US bank account can also make it easier to pay for expenses related to your home purchase, such as closing costs and property taxes.
In general, if you are a non-resident alien selling, you will likely need to apply for an Individual Taxpayer Identification Number (ITIN) when you sell your property to pay any necessary taxes. You may want to consider consulting with a tax professional who can provide guidance specific to your situation.
As a Canadian making passive rental income in the USA, you do not need a visa. However, if you plan to stay in the US long-term and manage many rentals, you may be eligible for an E-2 treaty investor visa. An E-2 would allow you to manage a US business. This means your family can also work and study in the US. There are many benefits to having a visa that allows you to live in the US with less restrictions, and you may want to consider a consultation with an immigration lawyer to see what your options are.
Yes, you will have to pay taxes on your rental income. We can advise you on different ways to structure your ownership of the property to minimize the tax implications.
