Has anyone here bought a second home to turn it into a rental? I'm wondering how it's going for you and if you're earning enough from the property to make it worth it? My husband and I are considering buying the house behind ours, fixing it up and turning it into a rental property but I'm worried that dealing with tenants and then the upkeep on a second home won't be worth it financially.

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Well, dealing with tentants can be rough but rental properties are a great investment overall, in my experience anyway.

Yup, lots of people do this. However, the current delta between what a mortgage would be and how much rent you can collect is pretty lopsided (and not in your favor) in most major cities. The maintenance and ongoing upkeep isn’t hard, especially if you find a property in good shape (or spend good money before the first tenant moves in).

Also, the term “second house” has a very specific use case in the mortgage world. If you’re just talking about buying “another” house, specifically one that is close to where you live, you’ll be taking out an “investment” mortgage, which has higher rates than a mortgage where you live in the property full time or part time.

Yes we have two “second homes” that we turned into STRs. We qualified for the mortgage as second homes because our income was high enough to not have to consider the rental income.
The mortgage companies knew that we would rent them out and we have insurance as a rental. It’s been a huge financial boom for us while simultaneously funding our summer beach vacations. However we purchased in 2019 and 2021 so it all comes down to math based on the price and rates you get.

Yes, that is how I built my portfolio. Look at my early stuff on Youtube InvestLYH on how to analyze the cash on cash return and see if your property will cashflow each month.

You are better off investing in a multi-family unit whether it be a duplex triplex quad or an entire complex... Multiple doors are always going to be a better investment than one singular. And I would also suggest finding a good property management company in your area to have them handle everything for you the little bit of money you would pay for them to manage it will be worth not dealing with the headaches.

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