Tips on buying a second home?

4 Replies

Hi all! I'm thinking of buying a second house as a passive income. I'm planning on buying a single-detached house or two semi-detached houses - depending on the price. My husband was the one who handled the majority of the paperwork with our house so I do not know some things about buying a house, let alone buying a second one.

A friend of mine shared this link about tips on how to buy a second home. It shared about mortgage and heloc (which I'll be using). I understand most of them on a basic level. But I want to hear from estate agents - any tips for me on buying a second home? Anything that I would need to know?

Thanks in advance.

Welcome to bigger pockets! and it sounds like you want to purchase a buy and hold investment property to realize cash flow. There is a lot to know! but you came to the right place. I suggest listening to some bigger pockets podcasts. That should give you a clearer image of what you really want and how to start going about it. 

Best of Luck! 

@Sunny Armstrong In addition to talking to RE agents, talk to investors, mortgage agents, your accountant and lawyer. If you have any friends in RE, talk to them too. Take some introduction courses on RE investing. Buying RE is passive income if done right, and requires a lot of work if you are going to manage them yourself. Also it requires time. Many people love the idea of passive income, but what they don't realize is you have to deal with the 4T's (toilets, taxes, Tenants and time). If you want passive income, maybe look into private lending, especially since you have a HELOC. You can make 8+% and this is more passive then buying an investment rental property. Or put the funds into a REIT to make some money until you learn enough to buy. It comes with its own risk. Talking about risk, you mention you didn't get involved in your primary residency purchase. This may be an indication that you might not want to handle negative issues that may come up in RE. Don't mean to be rude but I would rather see you pick the strategy in RE is suits you rather than buying RE just because everyone is doing it. Good luck

Originally posted by @Austen Mueller :

Welcome to bigger pockets! and it sounds like you want to purchase a buy and hold investment property to realize cash flow. There is a lot to know! but you came to the right place. I suggest listening to some bigger pockets podcasts. That should give you a clearer image of what you really want and how to start going about it. 

Best of Luck! 

 Thanks so much! I'll definitely make time to listen to them.

Originally posted by @Huong Luu :

@Sunny Armstrong In addition to talking to RE agents, talk to investors, mortgage agents, your accountant and lawyer. If you have any friends in RE, talk to them too. Take some introduction courses on RE investing. Buying RE is passive income if done right, and requires a lot of work if you are going to manage them yourself. Also it requires time. Many people love the idea of passive income, but what they don't realize is you have to deal with the 4T's (toilets, taxes, Tenants and time). If you want passive income, maybe look into private lending, especially since you have a HELOC. You can make 8+% and this is more passive then buying an investment rental property. Or put the funds into a REIT to make some money until you learn enough to buy. It comes with its own risk. Talking about risk, you mention you didn't get involved in your primary residency purchase. This may be an indication that you might not want to handle negative issues that may come up in RE. Don't mean to be rude but I would rather see you pick the strategy in RE is suits you rather than buying RE just because everyone is doing it. Good luck

Thanks for your detailed reply. I'll definitely look for RE courses as well as the lawyer and the agents. 

I was pregnant that time we got our house. My husband and I that I'm too emotional and preoccupied with our first pregnancy that he just handled it to get it out of my way. Although I already have 3 children, when they go back to school, I'll have plenty of time to study more on it, and eventually take care of the house(s). 

Cheers!