Are you planning a sunny retirement in Miami or a profitable investment in Florida? Buying a second home in the United States is of interest to many people due to its financial opportunities and lifestyle benefits. Indeed, this process, while attractive, requires clarity regarding legal aspects and financing options.
Therefore, what procedures do you need? How can you optimize your investment? In the following guide, we detail the steps for purchasing a property in South Florida. Let’s review the regulations, financing, and costs together. We’ll also highlight how Avanti Lending can guide you confidently and precisely along this path.
Legal aspects of a second home in the United States
To purchase real estate in the U.S., you must comply with specific regulations that may vary by state and county. In Florida, for instance, legal procedures safeguard the buyer; consequently, this helps transactions to be conducted with transparency and by regulations. It is crucial that a specialized attorney thoroughly review the contracts, deeds, and property title.
Foreign investors, however, face additional rules. They need an ITIN number for tax purposes. Furthermore, if it’s a second home in the United States, we recommend checking whether local laws permit it to be used as a temporary residence or rental property. Some areas prohibit short-term rentals. In any case, it’s best to educate yourself about these restrictions before making a decision (USA gov, 2025).
Taxes when buying a second home in the United States
Taxes are part of a real estate purchase. Please note that property taxes may vary. In jurisdictions like Miami-Dade, for example, they are charged between 1% and 2% of the property value. If you rent the home, you will report this income to the IRS.
Likewise, tax treaties prevent double taxation in some countries. Capital gains are levied upon the sale of the property, and subsequently, rates depend on the length of ownership.
Non-residents face inheritance tax. However, with an appropriate legal structure, it’s possible to reduce this impact. You should consult a real estate accountant to optimize your long-term investment.
Legal structures for investing in property in the U.S.
The way you acquire your second home in the United States has significant legal and tax implications. Some of the most common structures are:
- Buying on a personal basis. Although this is the simplest option, it exposes your assets to liability and may have tax disadvantages in terms of inheritance tax.
- Through an LLC (Limited Liability Company). This is one of the most recommended structures for foreign investors in North America. An LLC offers asset protection, a degree of privacy, and tax flexibility. It allows ownership of property by a legal entity, separating it from your assets.
- Through a foreign corporation. Another option that can offer tax and privacy advantages, although it is more complex to establish and maintain.
The required documentation for purchasing a second home in the United States includes the purchase agreement, the deed, and various disclosure forms.
Financing for your second home in the United States
A mortgage loan is usually required to purchase a property. Foreign investors face specific requirements. In Florida, banks typically need a high down payment, ranging from 25% to 40% of the property’s value.
A good credit profile makes approval easier. However, local history isn’t always necessary. In fact, at Avanti Lending, we offer solutions for international buyers that adapt to a variety of profiles. We also evaluate income and payment capacity. Ultimately, we help you carefully plan your financing.
Types of loans for home purchase
Mortgage loans vary depending on your needs. Some of the most common types include the following (Consumer Financial Protection Bureau [CFPB], 2025):
- Fixed-rate mortgages offer predictable payments. They’re ideal for maintaining long-term stability.
- Adjustable-rate loans have low initial interest rates. However, they can increase over time.
- Jumbo loans finance high-value properties. These are common in Miami.
Some programs allow for lower down payments. In other words, we customize options for foreigners. We explain each product to you so you can choose the best loan.
Tip: Indeed, adequate financing is a determining factor in a well-planned purchase.
Costs associated with a second home in the United States
Purchasing an additional property in the U.S. involves assuming a series of expenses beyond the purchase price. One of these is closing costs, which typically range between 2% and 5% of the property’s value. They include appraisals, inspections, taxes, and legal fees.
Another aspect is property insurance, which is necessary to protect the property against damage and liability. In southern areas, premiums tend to be higher due to natural hazards such as hurricanes or floods. This aspect is especially relevant if it’s a second home in the United States. It’s worth noting that it often remains unoccupied for long periods.
Association dues (HOA fees) can also represent a significant expense, especially if the property is part of a condominium or gated community. These fees cover services such as security, maintenance of common areas, and access to shared facilities.
Calculating these expenses in advance allows for more precise planning. By conducting a thorough assessment, you can avoid financial surprises and create more sustainable investments over the long term (Bankrate.com and Bradley, 2021).
Operating and maintenance expenses of your property
In addition to the initial costs, a second home incurs ongoing operating expenses that must be factored into the annual budget. Below are the most common ones:
- Utilities. Payment for water, electricity, gas, internet, and other services, depending on the property’s use and location.
- One-time repairs. Even if they aren’t required every year, it’s advisable to set aside a budget to address unforeseen issues such as leaks, structural damage, or appliance replacements.
- Remote management or administration. If you don’t live near the property, you’ll likely need the services of a management or concierge company. Delegate the management company’s responsibility to oversee the property, coordinate payments, or assist tenants.
Conduct a detailed operating expense analysis to get a realistic view of the total cost of maintaining a second home in the United States. A pre-planned assessment helps avoid financial imbalances and contributes to efficient property management.
Profitability of your additional property in the United States
If you’re planning to invest in a second home in the United States, be sure to evaluate the profitability. If you rent, your income depends on local demand. Miami has a robust rental market. Research average prices in your chosen area and consider vacancy periods between tenants.
Appreciation is another factor to consider. Florida shows steady growth trends. A strategic location increases profitability potential. Hiring a management company simplifies operations. The idea is to have them manage tenants, payments, and maintenance. Ultimately, choose properties with high demand to maximize profits (Faster Capital, 2025).
Efficient management of a second home in the United States
Property management requires a resolute and experienced team. A professional company charges between 8% and 12% of the rent. They also select dependable tenants, oversee repairs, and comply with local regulations. This is an excellent solution for foreign investors who own a second home in the United States and are unable to manage it directly.
On the other hand, don’t forget to evaluate the provider’s reputation before hiring them. Through effective management, it’s possible to optimize rental income, maintain property value, and analyze costs versus benefits.
How to buy a house in the USA with Avanti Lending?
It’s time to simplify property purchases in Florida. Thanks to our market experience, we’ve become a leader in the sector. As such, we offer personalized advice to Latin American investors through loans tailored to various financial profiles.
On the other hand, it’s good to know that you don’t need a local credit history. As a result, it is easier to access various financing plans. We’ll be happy to explain each option clearly and guide you step by step on how to buy a home in the United States. We also streamline your legal and tax procedures.
Real estate market and your second home in the United States
The Florida market is characterized by legal stability, making it an ideal setting for secure transactions. The U.S. economy, in turn, drives property appreciation. Miami, for example, combines the cultural appeal and economic growth. Economic policies affect prices and demand. A strategically located property tends to appreciate over time. Consult with experts to identify the most effective opportunities and make informed strategic decisions.
Invest and make your own alternative home in the USA!
Buying a second home in the United States allows you to combine profitability with an attractive lifestyle. Indeed, Miami and Florida offer unique opportunities. With proper legal and financial planning, for instance, you can better protect your assets. At Avanti Lending, we strive to be your partner, guiding you through every step of the process with professionalism and expertise. Visit us to learn about our services. Discover personalized loans and receive comprehensive support. Don’t postpone your investment. Contact us and make your property purchase in the U.S. a reality!
References
- Bankrate.com & Bradley, J. (2021, May 17th). ¿Cuáles son los costos asociados con la compra de vivienda? Chicago Tribune.
- Faster Capital. (2025, May 10th). Ingresos por alquiler: su camino hacia el éxito. Actualización sobre cómo aumentar los ingresos operativos.
- Oficina para la Protección Financiera del Consumidor [CFPB]. (2025, June 29th). ¿Cuál es la diferencia entre un préstamo hipotecario de tasa de interés fija y un préstamo hipotecario de tasa de interés ajustable (ARM, por sus siglas en inglés)?.
- USA gov. (2025, March 6th). Cómo sacar un ITIN.