We are starting a conversation about buying another home 1-3 hours from where we live to use as a cabin/vacation house and we would intend to list it on VBRO and similar sites as well. We would plan to rent it out FAR more than we would use it ourselves.
This basically seems like a good idea because we could collect well on it as a vacation rental, so it seems.
We're in very early stages in this conversation, I don't even know what to ask. Maybe my question is: what questions should we be asking ourselves and others!
We are saving about 41% of income right now and putting another 25% (ish) towards our HELOC which has a balance of $270k. We own two other houses outright which have tenants.
I guess I'm just thinking outloud here.....
Would we only do this if we could pay for the vacation house in cash? We can't do that.
Would we do the standard 20% down payment or wait until we could put down considerably more if that is the MMM way to do it?
Would we not put much down with the plan of being able to pay huge mortgage payments with all of the income it generated? Doesn't seem like the MMM way to do things.
We'd plan to buy in Asheville, North Carolina - very popular place for local, domestic and even international travel.
I'd really appreciate any comments any of you have!