Buying a property to rent out in a popular vacation place such as Florida can be a highly profitable opportunity. Florida’s year-round warm climate and stunning natural beauty make it a very appealing place for vacationers and retirees. This means a steady demand for rental properties. Another advantage of Florida is the fact that there is no state income tax. This can equal a significant financial advantage for foreign investors. Take advantage of the state’s booming tourism industry and diverse economy and purchase a rental property to make you significant passive income.
There are some documents that are usually required to obtain a Foreign National Loan. These include:
- A valid passport (Canadian or other)
- A current address
- Income documentation
- Bank statements and reference letters
- Income verification letter
- Bank statement of your down payment source
- 6 to 12 months of reserves that prove you can continue payments
US Foreign Investing FAQs
Our sister company, Rateplicity, has offices in Florida. Florida is a great area for vacation homes or investment properties. Hot rental markets in Florida include Miami, Orlando, Tampa, Jacksonville, and Fort Lauderdale. There are also some hidden gems like Venice, Marco Island, and St. Petersburg.
You may not necessarily need a US bank account but having one could make the process easier and more convenient.
Using a US-based lender to obtain financing means you will most likely be required to have a US bank account for the transfer of funds and mortgage payments. Having a US bank account can also make it easier to pay for expenses related to your home purchase, such as closing costs and property taxes.
In general, if you are a non-resident alien selling, you will likely need to apply for an Individual Taxpayer Identification Number (ITIN) when you sell your property to pay any necessary taxes. You may want to consider consulting with a tax professional who can provide guidance specific to your situation.
As a Canadian making passive rental income in the USA, you do not need a visa. However, if you plan to stay in the US long-term and manage many rentals, you may be eligible for an E-2 treaty investor visa. An E-2 would allow you to manage a US business. This means your family can also work and study in the US. There are many benefits to having a visa that allows you to live in the US with less restrictions, and you may want to consider a consultation with an immigration lawyer to see what your options are.
Yes, you will have to pay taxes on your rental income. We can advise you on different ways to structure your ownership of the property to minimize the tax implications.