Buying a vacation home & get paid back too

There's a lot to think about when considering the purchase of a vacation home. In addition, you need to give some thought as to the cost involved with maintaining that new asset.

I'll also explain how you can get others to pay for it!

I'd like to offer a bullet list of items that you should consider and ways to make the property pay for itself.

LET'S DIG IN...

• Location, location, say it with me, location- how far from where you live do you want your vacation home to be? Using North Carolina for example, you can have a beach house or you might be really smart and opt for a mountain home. You want a place that's an easy drive from your home, assuming you'll want to use it often. If you're planning on offering it as a short term rental then it would be advisable to research if there are any restrictions prohibiting rental properties in an area that you like. Some properties allow long term rentals but no short term rentals. Your real estate agent will check into any restrictions before you decide to buy.
• Find a local real estate professional that is familiar with the area and knows the ins and outs of rental properties. Your relationship with your agent must be one of trust and loyalty. Go and look at a number of properties. See if the property is, in fact, a good fit as a vacation rental. Test ride your agent to see if he/she really has your best interest at heart.
• Talk to your lender BEFORE getting too serious about buying a second home. Your lender can advise you what it will take to make the purchase. Get pre-approved before the third house you see. You'll be ready to pull the trigger when you do find that 'perfect' house. Also, a good financial advisor is worth their weight in gold to keep you on track and within your goals.
• Your real estate agent is prepared to provide all the necessary legal documents when you are ready to make an offer as well as negotiate on your behalf.
• Check to see what the property might need to make it even more desirable as a vacation rental. Would a hot tub increase your revenue? How about an upgrade to the deck or what about increasing the parking area to accommodate an extra car?
• Talk to a rental agency near the property. You can always handle the reservations, maintenance, etc. yourself but a rental agency can take that burden from your shoulders. The rental agency can help you decide what nightly rate you should be charging and what times of year that rate might change based on season, etc.

Give some thought about both enjoying your new second home AND letting it pay for itself too.