Arizona is full of snowbirds, not the actual aves kind with feathers and all, but the human kind. These snowbirds often live most of the year in northern states such as Washington, Oregon, Montana, and other states that tend to get a little cooler, if not downright freezing cold in the winter. These snowbirds had South about November and stay around until March or April. Because of this, we have a lot of people buying a second home or vacation property specifically for the winter months. If you’re looking at buying a vacation home or second property in McCormick Ranch, here are some things to keep in mind.
You can buy a second home to be a cash cow or at least provide some cash flow income each month but there are some implications to this type of rental property. Factors include location, interest rates, property condition, and pricing trends. Are looking to rent it out while you’re not using it? It could pay for itself for the rest of the year.
We always say, location, location, location and it really is true. Buy where you want to be and chances are your renter will too. By the golf course, away from the course, next to a coffee shop or in a gated community? Is it convenient to hot spots and activities? By choosing a home in the right location it can literally pay for itself in rental fees. A home in a great location with amenities most vacationers would want can get a lot more per month or week than a similar home with no perks.
Finances are obviously something to consider. Not only the cost of the house or condo but closing costs, HOA dues, taxes and insurance will all need to be considered. Are you financing the property? You’ll probably need a heftier down payment if you don’t live in the home full time. Homes do appreciate over time so you’ll want to make sure to do your taxes properly so you’ll get the most in depreciation and deductions.
Related: Should you buy a house with friends?
Are you planning on managing it or having someone else do it? Do you live close by or on the mainland? If you don’t live here full time, having a reputable property management team take care of the necessities is vital. I can offer referrals for great management companies that can assess, screen, repair and handle all managing issues with your property for the life of the rental. They can even set up schedules if you plan on visiting from time to time. Talk to us about how you want your rental managed and I’m sure we can come up with a plan.
Buying and investing in a second home is exciting, challenging and yet very rewarding. Get started today by calling our office and getting information on ideal properties for investing.