Condo & Townhome Financing in Milton, FL

Condo & Townhome investing in Milton

Condos and townhomes are the lowest-basis way into the Milton rental market, and the trade is that a second set of underwriting rules applies to the building, not just to you. Every DSCR condo file in Florida runs a project review: owner-occupancy ratio, investor concentration, HOA delinquency rate, reserve funding, and any pending litigation or special assessment.

At the Milton median of $325,000, a condo or townhome prices near $234,000, roughly a quarter under the detached median. Minimum down is 20% ($46,800), leaving a loan of $187,200. Estimated all-in PITIA runs about $2,036 per month, and that figure already carries an HOA allowance of $240/month — HOA dues count in the DSCR denominator, which is exactly why condo files that look cheap on price often ratio worse than a detached comp.

Returns and structure

Return metrics at the Milton median for this product: an estimated cap rate of 6.78%, and monthly cash flow of $97 positive at 20% down. A file that cash-flows at the minimum down payment is the exception in Florida right now, and it gives you room to absorb an insurance renewal without going to the reserve account.