Second Homes and Low Mortgage Rates

Have you ever considered buying a vacation home for your family? It is something I’ve considered for a few years but have not yet acted on. With mortgage rates being as low as they are, I think the time might be right to pull the trigger.

Rates are currently below 3% for conventional financing on a second home. My hope is to find a property in a location that our family will enjoy vacationing at for an estimated 10-20% of the year. I would then allow the home to be used as a vacation rental for the remainder of the year with the goal of having the mortgage expenses paid with the rental income.

Through my search I’ve come to rate homes on a letter grade system for various features. When I’m grading a potential vacation home I ask myself questions like, How is the home’s location? Does it have a memorable view? What about the interior, is it in turnkey condition? Or are there areas of upgrade that I’d like to complete? How is the floor plan and size of the interior? Does it have a good flow and a large common living space? Does the kitchen open to the rest of the house or is it off to one side? Does the bedroom and bathroom locations allow for two families to vacation together with relative privacy in those spaces? Does the home have a good sized deck and outdoor features like a spa? Is there a fenced area for our pet dog to use? And of course, price. How does the asking price of a given property rate in relation to other homes in the area and in relation to the qualities it has in the aforementioned spaces?

In addition to the qualities that I apply a grade to, I also look at features like utilities and internet access. Is the property on PG&E electric? If so, does it have an existing generator in the event the power is turned off when we’re on vacation? What about propane? Without propane, the cook top would be electric and many people prefer gas cook tops. Is there cable or satellite service to the property? And maybe most importantly for our family due to work is whether or not the property has access to high speed internet.

I’ve found the search for a vacation home to be very enjoyable. I’m able to show properties from the Nevada border to the coast and as far north as Mendocino. Additionally, I’ve made contacts with great agents throughout the region who are experts in their locales. California offers areas of immense beauty throughout the Northern California regions. If you’d like to chat further about pursuing a vacation home for yourself and your family, reach out to me at 916.705.2298 or via email at mark.delgado@cbnorcal.com.