How to rent out your house and buy another in Florida 2025
Introduction
How do you rent out your current house and buy another one in Florida in 2025? Well, if you want to rent out your current house and then buy another house, read this article for a step-by-step guide.
So whether you’re renting out your first property, house hacking to buy your next property. Or just trying to figure out how to properly lease your house without hiring a property manager. You’ve come to the right place because when you get the leasing part right, managing the rest becomes 10 times easier.
Why This Strategy Works
So, let’s get started on why this strategy works. Rent out your current house and buy another—it’s one of the fastest ways to grow your real estate portfolio in the USA, especially in Florida.
And that’s why people do it. You already own a home. There’s likely a good amount of equity in it. You can then buy your next property as a primary residence. Which means a lower down payment and better loan terms. You then convert your first home into a rental property, generating income from your first property while you move into your next property.
Step 1: Estimate Rental Value
So, where do you start this process? The first step is that you need to estimate what your rental value is going to be — how much rent you’ll be able to collect on your current property. You really just need to figure out what that property is renting for.
How to Research Rental Comps
The way to do this is to go to different websites where people search for rentals like Zillow, Craigslist, Apartments.com, or Rentometer and look at rental comps in your area. Make sure you’re comparing similar features: similar bedrooms, bathrooms, square footage, amenities, and property type (single-family home, townhome, apartment, etc.). Then figure out your ballpark monthly rent. This is important for the next step.
Step 2: Get Pre-Approved for Your Next Home
Once you’ve figured out what your property will rent out for, the next step is to get pre-approved for your next home from a lender or mortgage broker. You’ll want to find a local lender in your area that considers outgoing residents as leaseholders. This means keeping your current home as a rental and using future rental income to help qualify for your new purchase.
Documents Lenders Typically Require in Florida
To get pre-approved, lenders will typically ask you to fill out a loan application, check your credit, and send you a list of documents they need, which may include W2s, tax returns, pay stubs, bank statements, investment account statements, and IDs. They will also want an estimate of your rent for your current home.
Some lenders will run your file through initial underwriting, which helps ensure you are fully pre-approved and ready to make an offer. It also shows if there are any additional documents or steps required for this strategy.
Step 3: Coordinate With Your Agent and Lender
Next, develop a strategy with your agent and lender. Once you are pre-approved, involve your real estate agent (sometimes with the lender). Make sure both the agent and lender understand the strategy so that the transaction goes smoothly.
Possible Lender Requirements After Offer Acceptance
After your offer is accepted, the lender may require additional documentation. Such as a lease agreement from your current property and a security deposit before closing on the new home. If required, you will need to market your current home for rent before moving out.
Step 4: Prepare Your Home for Rent
The next step is to prepare your current home for rental. Prepare it almost as if you were selling it: clean, tidy, and fix anything that might show up in the showings or photos. This is part of a two-step leasing strategy:
Stage the Property
Stage the property for photos and displays. Capture professional photos, write detailed listing descriptions, create Zillow 3D tours, and record a complete video walkthrough.
Getting this leasing part right is crucial to attracting a great tenant immediately, especially if your lender requires a lease and deposit.
Step 5: List and Market the Property
Once you’re ready, list your property on rental websites like Zillow (consider the premium paid), Apartments.com, Facebook Marketplace, and Zumper. Be clear about the lease terms, rental criteria, and move-in date. Extend your move-in date by 14-21 days to account for potential delays with closing on your new property.
Screen Tenants and Handle Leasing
Once leads start coming in, schedule showings at convenient times after you move in. Screen potential tenants using an online application platform, have them sign leases, and collect deposits. If your lender requires confirmation of the lease and deposit, send your lender a draft lease first, then finalize it with the tenants, and provide the lender with proof.
Step 6: Close and Transition
After you close on your new home, move out, deep clean, make any necessary changes or repairs, and prepare the property for the second phase of the leasing strategy. This includes professional photography, move-in documentation, and another round of pre-move-in checklists with your tenants. Then officially move the tenants in.
Becoming a Landlord
This is where you transition from homeowner to landlord. Your current property becomes a true investment property. Once the post-transfer photos are taken, they can be reused for future vacancies. With your listing details, lease terms, and rental criteria already set, you can effectively relist.
Who This Strategy Works For
This strategy works very well for first-time landlords, house hackers, or homeowners who want to build a portfolio without selling their current property. Renting out your current house while buying another as a primary residence allows you to take advantage of low-down payment programs and better loan terms.
Repeat the Process
Once you have occupied it for a year, you can repeat this process to continue building your portfolio. You are fully capable of managing your rental property yourself or with a property manager, especially if you live Florida.
Conclusion
Rent out your current house while you buy another one — it is one of the easiest ways in Florida to start building long-term real estate wealth in 2025. Instead of selling, you turn your old home into a rental — which means you keep your equity working for you, start earning monthly income, and still qualify for better financing on your new property. Once your home is ready, tenants are in, and your next purchase is done, you’ve officially moved from homeowner to real estate investor. And the best part? You can repeat the entire process again and built your portfolio brick by brick over the year.