Having a second home at the beach, the lake or in the mountains offers many potential rewards. Likewise, investment properties bring rental opportunities, ongoing income, potential tax benefits and a boost to your investment portfolio.
A few things to consider before buying a second home:
Ongoing income from rental.
Loan requirements depending on how you’ll use the property (primary residence or investment property).
Tax benefits depending on if you rent the property or stay there frequently. (Always consult a tax advisor.)
A few things to consider before buying an investment property:
Added financial responsibilities in addition to the mortgage,such as homeowners association dues, cleaning services, flood insurance and utilities.
Loan requirements, as investment property loans typically have higher interest rates, require larger down payments and have different underwriting requirements than properties occupied by their owners.