Step Two: Plan It

Step two establishes the financial foundation of your property search. Worksheets, calculators, and checklists equip you to navigate budgeting and financing with ease. Empowered with this knowledge, you’ll confidently purchase your dream vacation home.

Build Your Budget

This chapter helps you understand what you can afford by consulting with a local lender to assess upfront costs and monthly payments. Estimate your potential rental income and align your budget with your vacation home owner archetype. Explore valuable tax incentives available to short-term rental owners and prepare backup plans for worst-case scenarios. Use the Budget Planner Worksheet to organize your finances.

Conventional Loans

This chapter demystifies conventional mortgages, dispelling the myth that you need 20% down on a vacation home. Learn about 10% down second-home mortgages, house-hacking strategies, the application process, qualification criteria and typical fees associated with traditional lenders.

Creative Financing Strategies

Discover innovative ways to finance your dream vacation home. Explore options like seller-financing, HELOC (Home Equity Line of Credit), home equity loans, pooling resources with family and friends, and retirement accounts like a 401(k) or IRA. Weigh the pros and cons of each option to find what works best for you.

Set Up Costs

Learn how to estimate the setup costs for your vacation home, including expenses such as renovations, decor, furnishings, linens, replenishables and more. Discover ways to cover these costs, such as 0% interest credit cards, HELOCs, home equity loans, or vendor payment plans. The included Set-Up Cost Calculator can be adjusted for each property you consider.

House Hunting

Now it’s time for the fun part! Plan a trip to your desired destination to view properties that meet your Buy Box Checklist. Book a short-term rental for your trip to experience shopping for, booking with and staying at the competition first hand. Meet with your selected agent to tour properties, and follow this chapter’s guidance from offer through inspection to closing.