How much will I actually have to invest?

Your net proceeds, not your sale price. Brokerage compensation, mortgage payoff, taxes, title and prorations all come out of the price, and escrow refunds arrive weeks later. A written net sheet gives you the real figure, which is usually lower than the mental estimate.

Is investment lending different?

Generally yes. Deposit requirements, pricing and qualifying criteria commonly differ from a primary residence. We are not going to quote figures because they vary by lender and move. Ask a specific lender before you sell, since it determines what you can buy.

Can I defer capital gains by buying an investment property?

Not by buying one after selling your home. A 1031 exchange applies where the property sold was itself an investment property, not a residence. Buying an investment does not defer gain on a home sale. Ask an accountant before selling, because options close afterwards.

What is the most common thing that goes wrong?

Association leasing rules. Minimum terms, annual caps and post-purchase waiting periods can make renting impossible for a year or more, and short-term rental rules are stricter again. Check the actual rule for that community before offering, not after.

What costs do people underestimate?

Insurance, which in Florida has moved enough to invalidate older assumptions. Association dues, especially in buildings facing structural work. Special assessments, maintenance on older properties, and vacancy, which people model at zero and then experience.

Should I sell first or buy first?

Selling first usually wins here, because certainty about the deposit matters more for an investment purchase and funding a deposit another way is harder. If you are also buying a home, that purchase should generally come first in the queue.

Where do I get realistic rent figures?

From what has actually let recently rather than from asking prices, which are opinions. Asking rents in a community can sit well above what tenants are paying, and an income model built on them overstates the return from the start.

Does the building matter as much as the unit?

For a condominium, more. Reserve position, assessments, insurance and financeability all sit at building level and affect both your holding costs and your eventual exit. The condo cluster in this guide covers those checks in detail.

What should I do first?

Get a net sheet on your sale, because every other part of the plan follows from that number. Then speak to a lender about investment terms and to an accountant about the tax position, before committing to either side of the move.

Is a single-family rental easier than a condo?

It avoids association leasing restrictions and assessments, which are the two things that most often break a condo investment. It also means you carry the roof, the exterior and the landscaping yourself. Neither is simpler, they fail differently.

Should I buy near where I live?

Proximity matters more than people expect if you intend to self-manage, and much less if you will use a manager. Buying somewhere you know is usually the better first purchase, because you can judge the location rather than the spreadsheet.

How much should I keep in reserve?

Enough to cover several months of carrying costs plus a meaningful repair, because vacancy and a failed air conditioner tend to arrive together. Investing every last dollar of your proceeds is the most common way a first rental becomes a forced sale.

Using sale equity to buy an investment property

Using equity from your sale to buy an investment property is a common move in Palm Beach County, and it goes wrong in a predictable way: people plan from the sale price rather than from the net, and then find the deposit is smaller than expected. The arithmetic is straightforward once the right number is in front of you.

Free Home Valuation

Every situation on this page comes down to a number: what the property is worth and what you would net. We will work both out from recent sales near you, at no cost.

Start from the net, not the price

Your sale price is gross, and brokerage compensation, payoff, taxes, title and prorations all come out of it.

What funds the purchase is the closing wire, not the contract price.

Escrow and insurance refunds arrive weeks later and cannot be counted on the day.

Any tax owed on the sale reduces what is genuinely available, even though it is paid later.

A written net sheet gives you the real figure, and it is usually lower than the mental estimate.

Every subsequent decision in this plan runs off that number.

Investment lending is different

Lenders generally treat an investment purchase differently from a primary residence.

Deposit requirements, pricing and qualifying criteria all commonly differ.

We are not going to state figures, because they vary by lender and move over time.

The useful question is what a specific lender will actually offer you on a specific property.

Have that conversation before you sell, because it determines what you can buy.

Selling first and then discovering the terms is the wrong order.

What the property has to cover

Mortgage payment, property tax, insurance and association dues where they apply.

Maintenance and repairs, which are not optional and which people consistently under-budget.

Vacancy periods between tenancies, which are normal rather than exceptional.

Management, whether you pay for it or absorb the work yourself.

Florida insurance costs in particular have moved sharply and deserve a current quote rather than an estimate.

Build the numbers from quotes rather than from percentages you read somewhere.

Association rules decide the model

Many Palm Beach County associations restrict leasing through minimum terms, annual caps or waiting periods after purchase.

A community with a strict cap may make renting impossible for a year or more.

Short-term rental rules are separate again and are often stricter.

Municipal rules on short-term rentals apply on top of association rules.

Check the actual rule for the specific community before offering, not after.

This is the single most common way an investment purchase turns out not to work.

The tax questions to ask first

The capital gains exclusion applies to a primary residence, not to an investment purchase you make afterwards.

Buying an investment property does not defer gain on the sale of your home.

A 1031 exchange applies where the property sold was itself an investment property, not a home.

Depreciation will apply to the new property and will be accounted for when you eventually sell it.

These are accountant questions and the answers change what the plan is worth.

Ask before selling, because some options disappear once the sale closes.

Sequencing the two sides

Selling first gives certainty about the deposit, which matters more for an investment purchase.

Buying first requires funding the deposit another way, which is harder on an investment property.

An investment purchase is rarely urgent in the way a home purchase is, so selling first usually wins.

That said, a specific opportunity can justify moving faster.

If you are also buying a home, that purchase should generally come first in the queue.

Trying to do three transactions at once is where these plans come apart.

Being honest about the return

Gross rent is not return, and the gap between the two is larger than beginners expect.

Subtract every carrying cost, a realistic vacancy allowance and a maintenance reserve.

Then compare what remains against what the same money would do elsewhere.

Factor in your own time, because self-management is work rather than free.

A property that barely covers its costs is a bet on appreciation rather than an income investment.

That may be a reasonable bet, and it should be a conscious one.

Where the numbers usually break

Insurance, which in Florida has moved enough to invalidate older assumptions entirely.

Association dues, particularly in buildings facing structural work or assessments.

Special assessments, which can arrive after purchase and are not recoverable from a tenant.

Maintenance on an older property, which is higher than the spreadsheet usually allows.

Vacancy, which people model at zero and then experience.

Get current quotes on each rather than using rules of thumb.

What to check before offering

The association's leasing rules, in writing, from the association.

Current insurance quotes for that specific property rather than a general figure.

The building's reserve and assessment position if it is a condominium.

Realistic rents from what has actually let recently rather than from asking prices.

Whether the building is financeable, since that affects your exit as well as your purchase.

The condo cluster in this guide covers the building-level checks in detail.

How we help with both sides

We produce an honest net sheet on your sale, which is the figure the whole plan depends on.

We tell you what is realistic to buy with that figure rather than what is aspirational.

We check leasing rules and building position before you offer rather than after.

We use actual recent rents rather than asking prices when we model the income.

We tell you when the numbers do not work, including when that is not what you want to hear.

Ask us for the net sheet first, because every other part of this plan follows from it.

This page explains how the money side of a Florida sale works so you can plan around it. It is not legal or tax advice. Tax on your sale belongs with an accountant, and the legal effect of your contract belongs with a Florida attorney. What we can give you is an accurate figure for what your home is worth and what you would net, which is the input both of those conversations need.

Frequently Asked Questions

How much will I actually have to invest?: Your net proceeds, not your sale price. Brokerage compensation, mortgage payoff, taxes, title and prorations all come out of the price, and escrow refunds arrive weeks later. A written net sheet gives you the real figure, which is usually lower than the mental estimate.
Is investment lending different?: Generally yes. Deposit requirements, pricing and qualifying criteria commonly differ from a primary residence. We are not going to quote figures because they vary by lender and move. Ask a specific lender before you sell, since it determines what you can buy.
Can I defer capital gains by buying an investment property?: Not by buying one after selling your home. A 1031 exchange applies where the property sold was itself an investment property, not a residence. Buying an investment does not defer gain on a home sale. Ask an accountant before selling, because options close afterwards.
What is the most common thing that goes wrong?: Association leasing rules. Minimum terms, annual caps and post-purchase waiting periods can make renting impossible for a year or more, and short-term rental rules are stricter again. Check the actual rule for that community before offering, not after.
What costs do people underestimate?: Insurance, which in Florida has moved enough to invalidate older assumptions. Association dues, especially in buildings facing structural work. Special assessments, maintenance on older properties, and vacancy, which people model at zero and then experience.
Should I sell first or buy first?: Selling first usually wins here, because certainty about the deposit matters more for an investment purchase and funding a deposit another way is harder. If you are also buying a home, that purchase should generally come first in the queue.
How do I work out the real return?: Subtract every carrying cost from gross rent, add a realistic vacancy allowance and a maintenance reserve, then compare what remains against what the same money would do elsewhere. Factor in your own time, because self-management is work rather than free.
Where do I get realistic rent figures?: From what has actually let recently rather than from asking prices, which are opinions. Asking rents in a community can sit well above what tenants are paying, and an income model built on them overstates the return from the start.
Does the building matter as much as the unit?: For a condominium, more. Reserve position, assessments, insurance and financeability all sit at building level and affect both your holding costs and your eventual exit. The condo cluster in this guide covers those checks in detail.
What should I do first?: Get a net sheet on your sale, because every other part of the plan follows from that number. Then speak to a lender about investment terms and to an accountant about the tax position, before committing to either side of the move.
Is a single-family rental easier than a condo?: It avoids association leasing restrictions and assessments, which are the two things that most often break a condo investment. It also means you carry the roof, the exterior and the landscaping yourself. Neither is simpler, they fail differently.
Should I buy near where I live?: Proximity matters more than people expect if you intend to self-manage, and much less if you will use a manager. Buying somewhere you know is usually the better first purchase, because you can judge the location rather than the spreadsheet.
How much should I keep in reserve?: Enough to cover several months of carrying costs plus a meaningful repair, because vacancy and a failed air conditioner tend to arrive together. Investing every last dollar of your proceeds is the most common way a first rental becomes a forced sale.

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Selling to relocate out of Florida: sequencing the sale against a job start, what you lose by leaving, and how to run the closing remotely.

Buy before you sell: how it actually works

Buy before you sell means funding two properties briefly. The routes lenders offer, what each costs, and how to decide whether the overlap is worth it.

Work out your numbers

What is my home worth?

A valuation built from closed sales in your own community, with the comparables named.

Estimate your net proceeds

Work the commission, documentary stamps and closing costs against your own number.

Current market reports

Prices, days on market and inventory for the counties we cover, updated monthly.

How we list a home

What we do between the listing agreement and the closing table, phase by phase.

Talk It Through

Tell us the situation and we will tell you what it is worth

Most of what makes a sale complicated is solvable once somebody has looked at the actual numbers. Onias Derilus is a licensed Florida broker and there is no cost to a conversation, whether you list this month or next year.

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