Have you thought about buying a nice beach front property to use? Maybe a wonderful little cottage in the mountains? Hey, why not both? Why not live it the mountains during the summer months and rent it out during ski season? And you can live invacation home property your beach house during the cold winter months and lease it to vacationers the rest of the year?

Actually, that’s not a bad plan and if put together properly you can own both houses essentially mortgage-free, taking care of the loan as well as maintenance costs through rental income.

If you’re considering financing a vacation or second home, you’ll discover that lenders treat a vacation home very much like a primary residence. Rates are competitive and down payment requirements are lower for a vacation home compared to say a rental property across town.

Yet to gain the “vacation” status, the lender must be convinced that the acquisition will indeed be your vacation home. That means the property should be in an area where people spend their vacations. The beach, the mountains, the desert or by the lake. If your “vacation” home is across town, you can expect to put more money down as it’s an investment property, not for your relaxation.

There’s something else to consider that affects cash buyers as wells as those who finance the property. You’ll need to hire a professional property manager to help take care of maintenance issues, working with tenants and collecting rent. Vacation rentals are typically stretch from just a few days to a couple of weeks which means finding, screening and collecting rent from vacationers will be a full time activity when vacation season starts.

While you’re spending a relaxing summer in the mountains, your beach cottage is almost a revolving door with new renters every week, cleaning between visits and making sure the tenants are happy. If this is in your future, find an experienced property manager for the day to day operation. Relax. Enjoy your summer home.