Owning a second home may sound like you need to be swimming in extra money to be able to accomplish this. But in all reality that’s really not the case. Real Property Management Wasatch UC works with many individuals on a daily basis who have been smart with their money and their investments and it’s paying off.
Some of our Owners that we work with never planned on becoming a home investor, but with good credit, paying attention to the market, and watching for a good investment, we have watched these owners blossom into home investors. And it all started with purchasing a second home.
Here are some advice we share with our owners who turn to us when they are thinking of getting a second home…
1. Shop around for a mortgage. The market is constantly changing and so take a little extra time; look around, and don’t be afraid to say “no” to the first offer from a lender. Give yourself time and be smart about your choice.
2. Know your long-term goals? Buying a second home requires having a plan and being prepared for your future. If you are purchasing a second home as an investment property, make sure you have done your research on what you can charge, how much you’ll make, do you have money to put aside for extra problems or maintenance? If this is a vacation home, find a neighborhood where you know your property will be safe and taken care of if you don’t visit it often.
3. Use a local real estate agent. This is extremely helpful and will save you countless hours of searching for the “right home.” When you’re working with a real estate agent, you can give them a description of what you are looking for and you’ll be amazed how quickly your agent can find you homes that land in that criteria.
4. Resist the urge to impulse buy. This can actually be harder for some people than you think. But you really need to do the research. If it’s a fixer upper, how much money will you need to invest in this property? Each property is different but plan on adding $5,000 – $10,000 extra on top of what everything will cost.
5. Renting out your home for extra income. We see two types of people that rent out their homes. The first are those who rent out their home seasonally. They still want access to visit their second home, but they also know when it’s a good time to rent it out and use an Air B&B. The second are home owners looking for tenants to lease the property to, this is where a property manager would be extremely useful because they know all the fair housing law acts and much, much more.
We wish you the best on searching for your second property! If you are looking for a property manager to take care of the tenant and property needs give us a call for a free quote today!