Second Home Vacation Rental - Mortgage

[John Prunier]

Hey BP, My parents have an accepted offer for a second house in Nantucket where they would rent it out during the summer. What is the best strategy for a mortgage? They aren't sure about write offs and declaring income. 1) Their current house is paid off so would it be best to get a mortgage on their primary house and use that towards the vacation rental to write off the interest? 2) Get the mortgage as a second home? 3) Get the mortgage as an income property? Any insight is appreciated! Thanks, John