Buying Property in Miami and Florida as a Foreign Investor: Practical Lessons From the Field

Table of Contents

• Introduction
• The Structure Question Nobody Likes
• Taxes: The Hidden Bite
• Financing: Yes, Foreigners Can Borrow
• The Bank Account People Forget
• Due Diligence: Boring, But It Saves You
• Property Management: The Real Lifeline
• María’s Miami Story
• The Mistakes That Cost the Most
• Final Thoughts

Introduction

I can’t count the number of times someone has told me: “Buying in the U.S.? That’s easy. You just pick a condo, sign the deal, and rent it out. Right?”

If only.

From the outside, U.S. real estate looks like a straight line: money in, dollars out. But once you actually step into it—especially as a foreign investor—it becomes a maze. There are laws you don’t know, taxes you didn’t expect, and banks that seem to ask for every document under the sun.

I’ve seen investors walk into this maze full of energy and walk out with a profitable property. I’ve also seen others leave frustrated, wondering where their “easy” investment went wrong.
​
What follows isn’t theory. It’s what really happens, the mistakes I’ve seen, and the wins too. And to ground it all, I’ll tell you María’s story—a Colombian investor who dreamed of owning in Brickell, Miami. Her journey captures the highs and lows every foreigner faces. (IRS – Rental Expenses).

The Structure Question Nobody Likes

María’s first question was one I hear all the time: “Do I really need an LLC? Can’t I just buy under my name?”

I don’t blame her. The word “LLC” sounds corporate, distant, like something for big companies, not someone buying a condo. But here’s the deal: that little company is a wall. If a tenant sues, if there’s a slip-and-fall accident, the LLC takes the hit—not your personal savings.

There’s another layer too: tax. With an LLC, property expenses can be deducted. Travel costs, repairs, management fees—they all count. Buy in your personal name and you lose those advantages.

María wasn’t convinced at first. A week later, she called me after talking with a lawyer. “Okay,” she said, almost reluctantly, “I get it now. Let’s set up the LLC.”

Taxes: The Hidden Bite

Here’s where many investors stumble: taxes.

There are three levels to think about:

• Federal: rental income is taxable. Sell the property, and FIRPTA takes 15% right away. (IRS – FIRPTA Withholding).
• State: Florida has no personal income tax. That’s why so many investors choose it over New York or California. (Florida Department of Revenue).
• Local: Miami-Dade charges property taxes—about 1–2% a year on assessed value. (Miami-Dade Property Tax Overview).

I once had a client who swore his rental brought in “9% net.” After factoring in taxes, condo fees, and insurance, we ended at 5%. He leaned back, smiled, and said: “Still better than keeping it in Argentina.”

Perspective matters.

Financing: Yes, Foreigners Can Borrow

​Here’s a myth: foreigners can’t get U.S. mortgages. Not true. They can—but banks make you work for it.

María assumed she’d have to pay cash. Then we found a bank willing to lend, with conditions: 35% down and a mountain of paperwork. At one point, she texted me from a crowded café: “They’ve asked me for everything except my blood type.” She wasn’t exaggerating.

It took patience, but she got the loan. And it mattered. Financing meant she didn’t have to drain her savings. When the first rent landed in her U.S. account, she admitted: “That stress was worth it.”

Banks often grant loans to foreign nationals, although with higher down payments (often between 25% and 40%) and slightly higher interest rates. For example, in the U.S. financial sector, loans designed for “foreign nationals” typically require larger initial payments due to the added risk, as well as more extensive documentation. (Griffin Funding – Foreign National Lending)
​
In addition, other financial institutions that specialize in these products point out that “foreign national mortgages” usually require more paperwork, larger reserves, and higher down payments compared to loans for U.S. citizens. (The Federal Savings Bank – Foreign National Mortgage)

The Bank Account People Forget

This part seems small but it changes everything: open a U.S. bank account. Without it, rent money bounces around in international wires, fees pile up, and stress builds. With it, payments arrive clean and fast (Chase – How to Open a U.S. Bank Account for Non-Residents).

For María, it wasn’t just logistics. It was psychological. “Every month when I see those dollars hit my account, I feel calmer,” she told me. For many foreign investors, dollar income feels like security itself.

Due Diligence: Boring, But It Saves You

Home inspections are rarely exciting. No one gets thrilled about flipping through 20 pages of plumbing notes or electrical diagrams.

María almost skipped hers. The condo looked flawless: new floors, a modern kitchen, stunning views. But we insisted. The inspector uncovered issues that weren’t visible at first glance—small leaks, fragile electrical connections, and areas that would soon need maintenance. That information gave her real bargaining power. Thanks to it, she was able to negotiate a price reduction or secure a repair credit.

The importance of a home inspection is not new. The National Association of REALTORS® emphasizes that a visual inspection can uncover thousands of potential issues, and skipping it could cost buyers far more in the long run.

And in Florida, local experts warn that even properties that appear perfect may hide structural problems or weather-related damage, making an inspection a critical layer of protection for any buyer.

Property Management: The Real Lifeline

Foreigners often think they’ll manage the property from abroad. Rent collection, tenant issues, maintenance—how hard can it be?

The truth hits fast. A tenant misses rent. The AC dies in July. The condo association sends a notice in English legalese. Suddenly, managing from Bogotá, Buenos Aires, or Mexico City feels impossible (NARPM – National Association of Residential Property Managers).

That’s why property management matters. A good manager screens tenants, collects rent, handles repairs, and keeps everything moving. For María, it was the difference between worry and calm. “Honestly,” she told me after a month, “I almost forget I own the place. The rent just shows up.”

María’s Miami Story

Let’s put it all together.

María is 42, runs a family business in Bogotá, and had dreamed of Miami for years. In 2023, she made the move. She picked a two-bedroom in Brickell listed at $620,000.

The process nearly broke her. Financing dragged on. Paperwork piled high on her kitchen table. The inspection annoyed her. At one point she sighed: “Maybe this was a mistake.”

But she didn’t quit. She pushed through, cut $20,000 off the price after inspection, and closed. Within weeks, Binter had found a tenant—a young attorney—paying $3,400 a month.

Months later, I asked if she’d do it again. She laughed: “Yes. My only regret is waiting so long.”

The Mistakes That Cost the Most

​I’ve seen patterns repeat:
​

• Investors skipping inspections.
• Forgetting about taxes and condo fees.
• Overestimating rental income.
• Trying to manage properties from abroad.
• Buying without an exit plan.

Every mistake chips away at returns. Some sting a little. Others ruin deals.

Final Thoughts

Buying U.S. property as a foreigner isn’t easy. It takes patience, paperwork, and a strong stomach. But if you do it right—and surround yourself with people who know the system—it’s worth it.

María’s journey shows the reality: stress, doubt, frustration… and then relief when the rent starts coming in. For her, and for many foreign investors, that’s what matters. Security. Stability. And the comfort of knowing money is working in a market that feels safer and clearer than home.

At Binter Real Estate, that’s what we focus on—guiding clients through the messy parts so they can enjoy the results. Because at the end of the day, this isn’t just about property. It’s about protecting wealth and building peace of mind, one condo at a time.

Read More