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Daytona Beach area Real Estate
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Contact : Ponce De Leon Realty
Many lenders require buyers to put down at least 20% on a second home, and some require 25% or more.
Renting out a vacation home is a good way to cover some of the cost, but lenders often factor in a 25%
vacancy rate when determining your qualification for the loan.
The lesson is clear: Don't be overly optimistic on rental income--and you're nuts if you think the
vacation home will pay for itself immediately and in perpetuity. A vacation home can be just about
self-sustaining, but it takes careful planning and hard work. You shouldn't buy a second home on the
assumption that it will pay for itself.
If you plan to rent your vacation home, it's a smart idea to post the rent 10% to 20% higher than
your monthly mortgage payment in order to cover costs. Chances are you'll have to hire someone
to maintain the property in your absence, and unexpected repairs are a given.
Also remember that the most lucrative times to rent are the same times when you and your family will want to enjoy
the getaway--summer and Christmas.
You'll also have to decide what type of property you want: a house or a condo. Condominiums are great because
routine maintenance is included in the association fees, so you won't have to hire anyone to cut
the grass or make routine repairs.
