Dreams and Dollars: Navigating a Vacation/Rental Home Purchase

Emotional Balance Sheet with Paul Fenner

As we dive into the summer vacation season, a frequently asked question arises: should I buy a vacation home or rental property?

I share personal insights and experiences from when my family purchased a vacation home in Traverse City, Michigan, diving into the various considerations and decisions involved in such a significant financial commitment.

Here are some key takeaways to consider

• Understand the purpose: investment property vs. future retirement home
• Factor in costs: property management fees, higher taxes, maintenance/repairs
• Rental income may not cover all expenses, especially for a future retirement home
• Limits ability to travel elsewhere if frequently using the vacation home

I hope this episode provides helpful guidance as you navigate the complexities of owning a second home. Learn what factors you should weigh before taking the plunge into vacation home ownership.

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Resources Featured in This Episode:

Vacation Real Estate You Can Understand

HGTV Host Provides Insights on How to Make a Second Home a Reality

Understanding Capital Gains Taxes on Home Sales