A Second Home and Real Estate - Renting your Second Home
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Renting your Second Home

Takeaways

  • A mixed-use second home is bought for both personal use and rental income.
  • Tax status is based on how the home fits into one of four tax categories.
  • Resort and vacation communities are good locations for mixed-use second homes.

Did you know?

  • About 75% of vacation second home owners do not rent the property.
Have fun and make moneyPlenty of second homes are purchased solely to become investment real estate, and even though many eventually end up being rented at least on a limited basis, the vacation second home is often bought to specifically meet the needs of the second home owner. How about that hybrid property, the mixed-use second home bought for use by the owner with the full intention of using rental income to offset the costs of owning a second home?

Some new criteria come into play when looking for a mixed-use second home. Probably most important is to determine how much you intend to use your second home compared to how often you expect to rent it out. The answer to this question has significant influence on the tax category your second home will fall under.

Think Vacation Community

Because you intend to use the second home for vacations and getaways as well as use the real estate to generate rental income, the location must be attractive to seasonal short-term renters. This puts your mixed-use second home in a vacation or resort community, most likely near water recreation like a beach or lake.

Choosing a vacation community entails considering places you’ve been and would like to regularly return to, and then doing a little hands on research. It’s one thing to visit an area as a vacationer just looking to relax and have a good time. With an investor’s eye go back and really take a close look at the entire community, and visit at different times of the year to get a feel how the area changes with the seasons. Once you determine the vacation community that most appeals to you, enlist the services of a real estate professional in the area to help you find the perfect second home.

Search for Second Homes for Sale

To search for a selection of second homes for sale, please visit lifestylehomesearch.com, or visit the website of a GMAC Real Estate Office that serves the area where you'd like to buy a second home. To learn more about buying Second Homes or Vacation Homes, explore the rest of this section, or contact a GMAC Real Estate Agent.