Pros:
- You can use rental income to help pay for your vacation home. You also don't have to feel guilty about the home sitting empty when you can't get there.
- Great income potential over the years. Consider that your mortgage expenses will remain constant (if you select a fixed rate loan) while hopefully the rental prices and value of the property will continue to go up over time.
Cons:
- Your escape can turn into work. Think through whether you'd prefer to repaint the porch and fix the running toilet during your downtime or pay to have someone else handle the maintenance. If you choose the later check to see how this affects the property's income potential.
- There may be vacancies. Don't buy a home if you can only afford it if all peak season weeks are booked. The economic downturn has many families tightening their budgets and vacations are an easy thing to cut out.
- You'll be sharing your home with others. While most renters will treat your home with respect the property will be well used if full of vacationers every week. Save the white sofas and antiques for your primary residence.
Interested in running the numbers? Check out today's mortgage rates at ForTheBestRate.com. If you are looking at high value properties you may need to consider a non-conforming jumbo financing solutions
