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Are you considering buying a second home as an investment property, or to use as a vacation home? If you have plenty of equity in your first home, and your finances are in order, buying a second home can be a wise move – but it may be a little trickier than it was buying your first home!

Lending Requirements for a Second Home

Surprisingly, lenders will be more cautious about approving a mortgage for a second home than they were for your first home – even if you’ve been making your payments on time for years.

You may also be surprised to learn that if your second home is an investment property – for rental income, or to flip and resell – it may be harder to get a loan. Lenders are more open to financing a vacation property than an investment property.

Getting a Second Home Requires More Expertise – Get Expert Advice!

Real Estate Yogi has a network of over 160,000 licensed real estate and mortgage lending experts. We can connect you to a real estate agent and mortgage lender in your area, whowill provide a free consultation on your second home purchase.

Find the Best Rates on a Second Home Mortgage

Call1-800-987-1397now to get connected to a mortgage lending broker who can find the best mortgage rates available for a second home. One call will save you hours of online searching – and possibly thousands in interest payments!

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Find a Second Home Real Estate Agent

Call1-800-987-1397now to get connected to a mortgage lending broker who can find the best mortgage rates available for a second home. One call will save you hours of online searching – and possibly thousands in interest payments!

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Buying a Second Home as a Vacation Home

  • A mortgage may be as easy to qualify for as your first home
  • Down payment requirement may be similar to first home requirements
  • You can use the equity in your first home to make the down payment for your second home
  • Interest rates are often as competitive as on a first home
  • Your total debt payment on both your first and second home cannot be more than 36% of your gross income
  • You can rent out your vacation home for 14 days a year without having to pay taxes on it as rental income

Stats on Vacation Homes

  • 21% of homes sold are for vacation homes
  • Median vacation home price is $150,000
  • 40% of vacation homes are on or near a beach
  • Median square footage is 1500
  • Median distance from the owner’s primary residence is 200 miles
  • 45% of second home buyers use a real estate agent
  • 70% take out a mortgage for their second home
  • 26% plan to keep their vacation home for 11+ years
  • 31% plan to also purchase an investment property within two years
  • 85% believe that this is a good time to buy real estate
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Buying a Second Home as Investment Property

  • A mortgage will be harder to qualify for than your first home
  • Down payment requirement is usually higher than first home requirements
  • Interest rates are often higher on a first home
  • You will enjoy many tax deductions, including depreciation
  • You will receive monthly rent payments to cover the mortgage, taxes and insurance – but be sure to factor in vacancies
  • The investment returns on investment property is often better than the return on blue chip stocks, but may not be has high as stock market returns in a really good year.

Stats on Investment Property Purchases

  • Median household income is $95,800
  • 62% bought an attached single-family home
  • Investment property a median distance of 22 miles from primary residence
  • 42% purchased home to rent out
  • Median distance from the owner’s primary residence is 200 miles
  • 45% of second home buyers use a real estate agent
  • 70% take out a mortgage for their second home
  • 26% plan to keep their vacation home for 11+ years
  • 31% plan to also purchase an investment property within two years
  • 85% believe that this is a good time to buy real estate
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Best Cities for Second Home Investment Property

Here are the top cities for investing in a second home, along with the average home price. These are, by no means, the only places in America where you can purchase a second home as an investment property, and do very well. There are great pockets of opportunity in most states, but these are the ones with high populations and lower average home prices. Price and population are good indicators of a good market, but you also should look at the local economies, cost of living, and rental trends (who is renting and why).

  • Grand Rapids, MI, $154,348
  • Orlando, FL, $202,809
  • San Antonio, TX, $200,522
  • Charlotte, NC, $220,758
  • Salt Lake City, UT, $259,900
  • Dallas, TX, $211,245
  • Austin, TX, $281,355
  • Fort Lauderdale, FL, $258,577
  • Seattle, WA, $370,306
  • Cape Coral, FL, $211,531
  • Indianapolis, IN, $178,127
  • North Port, FL, $245,010
  • Nashville, TN, $227,201
  • Tampa, FL, $193,371
  • Charleston, SC, $287,220
  • Denver, CO, $302,347
  • Madison, WI, $227,560
  • Jacksonville, FL, $207,630
  • West Palm Beach, FL, $284,927
  • Boise, ID, $191,953

Does Your Second Home Need Home Improvements?

If that second home you found needs a new roof, remodeling, or repairs, and you don’t know a trusted, reliable home improvement company in your area, we can help! We have a network of thousands of home improvement companies, and can immediately put you in touch with one in your area. here’s no cost or obligation to call.

Call Real Estate Yogi forall the Help You Need for Your Second Home Purchase

Real Estate Yogi is nationwide network of experts in real estate, finance, legal, and home improvement. We answer the phone day and night, and will connect you to the expertise you need. The first consultation is always free, and there’s never any obligation to purchase anything – ever!

Get Expert Advice When Buying a Home!

Real Estate Yogi has a network of over 160,000 professional real estate and mortgage lending experts. We can connect you to an experienced real estate agent and mortgage lender in your area, who will give you a free consultation on buying a home. Call 1-800-987-1397 now to get connected to a mortgage lending broker who can find the best mortgage rates available.
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