Otis
Footballguy
Even though we still have a pretty hefty mortgage on our first home, we think we could carry a second home mortgage under the usual guidelines you see on the web. We’ve always wanted a beach home out in the hamptons—we’re beach people, and always loved the idea of a home on or a block from the beach, and the location would be an easy 45min drive from our house—and we’re thinking in the next year or two we’ll be in a position to have the down payment to pull it off.
Curious to hear from folks who have or are looking at second homes. Do you carry two mortgages? Concern you? Do you rent out part of or the entire year? If so, what are the pros/cons? Is it a major time sink/pain in the rear to care for it and deal with renters? Do you use a management company if it’s far from your primary home?
Ideally at least in early years we would probably rent out through VRBO, weekly rentals, for most of peak beach season on Long Island (Memorial Day through Labor Day). That would pay off a nice chunk of the annual mortgage (maybe a quarter after paying taxes on that income, just ballpark). We’d reserve a couple of weeks in August for ourselves, and then would probably go out a bunch in the Spring and Fall. Over the years as the mortgages are paid down, we might eventually rent less of the summer, perhaps eventually not rent at all. Might even consider retiring out there once the kids are out of high school and we no longer need to pay the exorbitant school taxes in our town.
Terrible idea? Bad investment? Huge PIA? Thoughts welcomed. Curious to hear from others who have done this.
Curious to hear from folks who have or are looking at second homes. Do you carry two mortgages? Concern you? Do you rent out part of or the entire year? If so, what are the pros/cons? Is it a major time sink/pain in the rear to care for it and deal with renters? Do you use a management company if it’s far from your primary home?
Ideally at least in early years we would probably rent out through VRBO, weekly rentals, for most of peak beach season on Long Island (Memorial Day through Labor Day). That would pay off a nice chunk of the annual mortgage (maybe a quarter after paying taxes on that income, just ballpark). We’d reserve a couple of weeks in August for ourselves, and then would probably go out a bunch in the Spring and Fall. Over the years as the mortgages are paid down, we might eventually rent less of the summer, perhaps eventually not rent at all. Might even consider retiring out there once the kids are out of high school and we no longer need to pay the exorbitant school taxes in our town.
Terrible idea? Bad investment? Huge PIA? Thoughts welcomed. Curious to hear from others who have done this.
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