How a Second Home Can Be Your Best Investment

Terms of Use......Page 3
Want to learn more?......Page 4
Contents......Page 5
Acknowledgments......Page 7
Introduction: It Makes Sen$e: Why Your Second Home Will Pay Off......Page 8
Real Estate as an Investment......Page 9
The Perfect Place: The Multiple Uses of Real Estate......Page 10
Getting Started: The Investment Engine......Page 12
Getting Started: Basic Decisions......Page 14
Evaluating Your Investment: The Math of Real Estate......Page 15
Let’s Get Moving......Page 18
Part 1 Our Secret Sauce Keys to the New Second Home Kingdom......Page 19
1 A Lifelong, Tax-Free, Second-Home Ownership Strategy......Page 21
Building Ownership through a Series of Properties......Page 22
The Couple That Already Has "Arrived"......Page 25
Depreciation Consideration......Page 26
Throwing the Rental in Reverse......Page 28
Personal Residence or Rental?......Page 29
2 Linking the Key Ingredients: Tax-Free Exchanges and Exemptions Can Save You Thousands......Page 35
Accumulating Wealth through Residences......Page 36
The "Like-Kind" Requirement......Page 38
Different Types of Exchanges......Page 41
What Are the Delayed Exchange Time Periods?......Page 44
What Is "Boot?"......Page 45
Linking Rentals in the Real World......Page 47
3 Balancing Dreams, Affordability, and Investment Potential......Page 49
Envisioning Your Dream Home......Page 50
Understanding What You Can Afford......Page 54
Financing Your First Investment Property I: The Down Payment......Page 55
Financing Your First Investment Property II: The Mortgage Loan......Page 57
Planning the Investment Potential of Your Second Home......Page 59
Location, Location, Location......Page 60
Choose the Right Property......Page 61
Do the Math......Page 62
Conclusion......Page 63
4 Proven How-To Avenues for Finding a Good Deal on Your New Second Home......Page 65
Direct Leap to the Ultimate Getaway......Page 66
Need an Interim Step? Give It the Old College Try......Page 70
Foreclosure Bargains by E-Mail—Without the Snidely Attitude......Page 74
5 Can’t Afford That Getaway? Eleven Overlooked Financing Options......Page 79
Seller Financing......Page 82
Lease Option......Page 83
Pick a Partner......Page 84
Equity Sharing......Page 85
Finding a Way with VA......Page 86
Four Inexpensive Strategies That Put You in the Driver’s Seat......Page 88
Flexible, Versatile Reverse Mortgages Can Help Seniors Buy, or Stay Put......Page 89
Part 2 Location, Location, Celebration......Page 93
6 What to Look for in a Community......Page 95
Choosing the Community for a 100-Percent Investment Property......Page 96
Choosing a Vacation Home Community......Page 99
Accumulating Information......Page 107
7 Where to Roll the Dice? Second-Home Buyers Share Their Stories......Page 109
Pack the Clubs AND the Kayak......Page 111
Some Truly Can Stand the Heat......Page 116
Trading the Cost of Southern California Waterfront for Airline Tickets......Page 118
The Value of Making the Best Local Agent’s "A List"......Page 120
"Just for the Halibut" and a Lot More......Page 122
"What to Do When It’s a Buck-10 in the Shade"......Page 123
Cost of Living Can Make Paradise Tough on a Fixed Income......Page 125
Part 3 Income-Generating Strategies for the New Second Home......Page 127
8 Turning Your Vacation Home into a Cash-Cow Rental......Page 129
Is There a Tiger in Your Rental Future?......Page 132
Friends Are Wonderful, but They Don’t Fly Free......Page 134
The Mary Kay (or was that Max?) Factor......Page 135
"Lockoffs" Provide Space and Distance......Page 136
Homesharing–Singles Find Income, Companionship......Page 137
Time . . . How to Get It on Your Side......Page 138
You Never Get a Second Chance to Make a First Impression......Page 139
9 Seven Methods for Marketing and Advertising......Page 143
Number One: Sell the Sizzle, but Make the Steak......Page 144
Number Two: Outsource, Outsource, Outsource......Page 145
Number Three: I Get by with a Little Help from My Friends......Page 146
Number Four: Think Globally, Act Locally......Page 147
Number Five: Roll Out the Welcome Wagon......Page 150
Number Six: Go Digital......Page 151
Number Seven: Extra, Extra, Read All About It!......Page 152
In the End. . .......Page 154
10 Minimizing the Hassle Factor of Your Investment......Page 155
Be Clear on the Terms of the Rental......Page 156
Check Your Tenants......Page 157
Rely on Good Trades People......Page 159
Remember, It’s a Business......Page 161
Conclusion......Page 162
Part 4 Appreciation Strategies for the New Second Home......Page 163
11 Choosing a Location That Will Appreciate over Time......Page 165
What Is Most Likely to Appreciate?......Page 166
Vacation Properties......Page 167
Investment Properties......Page 169
Conclusion......Page 174
12 Improvements That Will Pay for Themselves over Time......Page 175
The First Steps: Planning the Renovations......Page 176
The Value of Investing in Your Investment Property......Page 178
Specific Changes......Page 181
Conclusion......Page 189
13 Tips for Subdividing Your Property......Page 191
New Friends at Your Local City Hall......Page 194
Beyond The Great Divide: Will They Still Be Neighborly?......Page 197
ADUs spell G-O-L-D......Page 198
Too Many Miles, Too Little Interest......Page 200
A Tree Falls in Your Wallet......Page 202
Cashing in by Playing the Variance Card......Page 203
14 Understanding the 75 Million Boomers Who Will Buy or Rent Your Second Home......Page 205
Population Structure and Housing Markets......Page 206
Who Are These Guys?......Page 207
Why the Current Surge in Second Home Sales?......Page 208
Patterns of Mobility......Page 212
Boomerangs......Page 216
A Last Word......Page 217
Appendix Helpful Forms and Web Resources for Second-Home Buyers and Real Estate Investors......Page 219
Index......Page 237
About the Authors......Page 242