Hello, I am interested to hear what your opinions are on buying a second home. We currently live in our 3/2 home and are looking to purchase a second property to rent.

Should we look to purchase our second property as our primary, which would mean a lower down payment.

Or do we look for our second property as a rental property. Which we need 20% down.

Also, what are other options that might be available instead of putting 20% down on a second home that’s not a primary residence?

@James Jones With interest rates so low, using a low down payment option on a primary would make a lot of sense if the rental numbers worked well on your current home. This will let you keep your cash, which you can use for other investments or as reserves. Just make sure you're not over leveraged!

When you're dealing with a primary residence, though, you have to look at it slightly different than just an investment (unless your whole family is on board!). You want to make sure you're living in a place that makes you and your family happy. If your family is happy where they are now, then I would do a BRRRR on a different property if you're trying to avoid leaving 20% in the deal.

Best of luck!

@Joe Aiola thank you for the advice! I will start looking at other homes as our primary. We are ready to move on from our 1054sqft home.