Many out-of-state visitors fall in love with the Florida gulf coast and start looking at investment properties. That happened to me in Destin, Florida in 1999. Here's some things you'll need to know:

Daily and weekly rental beach condos do not qualify for conventional financing. Buyers either pay cash or get a portfolio loan, and this means a much higher down payment. Why is that? Because it's a bigger risk for investors who depend on the rental income to pay the mortgage payments.

Siesta Key gulf-side condominiums can cost $100,000 or more than condominiums on the bay side. If it's on the bay side, how far is it to the public beach? Is there deeded beach access?

Plumbing, windows, and the AC are big-ticket items that can cost buyers after the sale. Don't negotiate your sales contract without time for a home inspection--even if it's only for one day.  How much are the monthly condo fees and are there any special assessments coming up?  Know that today's taxes may be lower today than you will pay as an investor if the current owner has homestead exemption.

1031 Exchanges: Do you need to sell an investment property before you purchase here?  Your accountant can advise you on the rules imposed by IRS.  NEVER NEVER try to do a 1031 exchange if the replacement property you want to buy  is under construction. Been there, done that, too. The construction delays cost me $11,000 in capital gains taxes because the property I wanted was not completed within 180 days of selling the relinquished property.

Let me know if you have more questions about purchasing a second home or investment property here.  

I'm at 941-914-4914.

Linda Holley, Realtor, GRI, SRES, Fine Properties