Florida Investor Cash-Out: the State Tax on the Loan Itself
Program and regulatory figures verified July 24, 2026. Details change; confirm your scenario with us.
Florida investor cash-out runs on ordinary lender rules, with no constitutional drama. What catches out-of-state investors is a pair of tax lines on the loan itself, charged on a refinance just as they are on a purchase.
Can I cash-out refinance a rental property in Florida?
Yes, under ordinary lender rules. Florida has no Texas-style constitutional restriction on cash-out refinances, no mandated waiting period, and no constitutional fee cap; what applies is program policy: the property's rent-to-payment ratio, your credit, reserves, and the program's LTV ceiling for cash-out, which runs a notch below purchase leverage. Bring us the address and current balance and we'll quote the ceiling that applies to your scenario. The DSCR mechanics are in the Florida DSCR guide.
The Florida cost most calculators miss
Here is the line item to know before you model a BRRRR in Florida. Every mortgage recorded in the state pays two taxes on the loan itself. First, note documentary stamp tax at $0.35 per $100 of the amount secured. Second, a one-time nonrecurring intangible tax of 2 mills, which is $2 per $1,000, or 0.2%, under §199.133. Together that is about $5.50 per $1,000 borrowed. On a cash-out refinance the taxes apply to the new loan amount, so they are charged again on the refinance, not just on the original purchase. Texas charges nothing comparable, and most out-of-state calculators leave these lines out entirely, which is how a Florida BRRRR that looked clean on a spreadsheet loses a few thousand dollars at the closing table. We build them into the numbers up front.
How soon can I refinance? (The BRRRR question)
Buy, rehab, rent, refinance, repeat: the strategy lives or dies on the refinance timeline. The standard answer is about six months of ownership before programs will lend against the property's full appraised value, which is what lets you harvest the rehab equity. Some programs shorten that to three months; a few structures work sooner using purchase price plus documented improvements. Which one applies depends on the program and the file, and that's a conversation with no obligation attached: talk to Mike first. Keep rehab receipts organized, and get the lease signed before the appraisal when you can.
Prepayment penalties: common, negotiable, worth reading
DSCR loans commonly carry prepayment penalties, usually multi-year stepdown structures that decline each year. On business-purpose investor loans these are a matter of contract, and most programs will reduce or remove the penalty for a price, which matters if your plan is a quick BRRRR recycle or an early sale. We walk the stepdown schedule against your exit timeline before you lock anything, and your attorney reviews the note. Because Florida's loan taxes are charged on each new note, a refinance-heavy strategy should count both costs: the penalty schedule and the doc-stamp-plus-intangible bill on every new loan.
No pressure, no obligation, and no salesy follow-up: a 20-minute call with our team, real numbers, and a straight answer on whether the deal pencils.
Frequently asked questions
Can I cash-out refinance a rental property in Florida?
Yes, under ordinary lender rules: Florida has no constitutional cash-out restrictions like the Texas homestead rules. DSCR cash-out qualifies on the property's rent-to-payment ratio, with the LTV ceiling set by program a notch below purchase leverage. Budget the state loan taxes, about $5.50 per $1,000 borrowed, as a Florida-specific closing cost.
What state taxes do I pay on a Florida mortgage or refinance?
Two on the loan itself: note documentary stamp tax at $0.35 per $100 of the amount secured, plus a one-time 2-mill intangible tax ($2 per $1,000, or 0.2%) under §199.133. Together about $5.50 per $1,000 borrowed. They apply on a cash-out refinance as well as a purchase, on the new loan amount.
How soon can I refinance after buying a rental (BRRRR seasoning)?
About six months of ownership is the standard seasoning to use full appraised value on DSCR cash-out programs. Some allow three months, and a few structures work sooner using purchase price plus documented improvements. Which timeline applies is program-specific; bring us the deal and we'll tell you which lane it fits.
Do DSCR loans have prepayment penalties?
Commonly, yes: multi-year stepdown structures are standard on business-purpose DSCR loans, and many programs will reduce or remove the penalty for a price. Terms are contract-driven, so have your attorney read the note against your exit plan, and remember Florida's loan taxes apply to each new note if you refinance repeatedly.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content, not a loan commitment and not legal, tax, or insurance advice. City and county STR rules, tax figures, and insurance requirements change; verify current requirements with the city, your association, your CPA, or a Florida real estate attorney before you buy. Loans are subject to buyer and property qualification.