Why I Chose To Buy A Second Home (And Why It Might Be A Good Option For You Too!)

Before I begin, let me make one thing abundantly clear- I AM NOT A MILLIONAIRE. I’ve made decent financial decisions in my tenure and I make a decent living but I am most certainly not raking in a multiple six-figure income. Yet.

Perhaps the question I’ve been asked the most on social media since announcing my new “little condo” as I’m calling it (even though I’m pretty sure the square footage is more than my primary residence in the DMV, but that’s beside the point) is, “Wow, how’d you manage to pull that off?” or “Your parents bought you a condo?” (which, I won’t even begin to talk about how insulting that is). Today I want to talk about how not-complicated second homes are and why it just make more sense to you than you realize.. Even if you aren’t yet a homeowner.

We are second home people.

Growing up, I always knew that I would one day have a lake house. In fact, one of my very first Pinterest boards is entitled, “Future Lake House.” When I was in second grade, my parents bought a condo overlooking Lake Erie in Port Clinton, OH and I’ve been spending summers up here ever since. I cannot even begin to tell you how many memories have been created here, from pool days with friends in elementary school to summer weekends with college friends, a bad weekend at the lake was never to be had.

Covid put things in to perspective.

It’s crazy how much COVID really changed my perspective on so many things as I’m sure it did you too. I miss my family (especially my nephew. Sorry, everyone else) terribly and want to be able to spend longer periods of time with him them. COVID made it so that my work is now 100% remote if I want it to be, so having a place to work that’s quiet and where my dogs can come was top of my list.

I adore Lake Erie and all it offers.

In all my years up here, rarely do I have a bad time. The Great Lakes are beautiful but this particular area is especially fun. Put-In-Bay, which is an island within Lake Erie is only a short boat ride away and an absolute blast. Kelley’s Island (which hasn’t gotten its own blog post yet but certainly will!) is another island that’s more serene but still fun and absolutely gorgeous. On the mainland, downtown Port Clinton is very fun for dinner and bar hopping. Lakeside Chautauqua is a little slice of heaven on earth. It’s a Christian summer resort that has adorable shops and restaurants, and all kinds of activities for its residents. I just love it. Cedar Point, the BEST amusement park ever (argue with me. Go ahead) is only 20 minutes away.. So yeah, you can say there’s a lot to do.

Real estate in Ohio is stupid cheap and rental income is certainly a thing.

So, here’s where you come in. A lot of people assume that because they live in an expensive area (DC, for example) that they can’t afford to buy a house. While that is often true, what a lot of people don’t realize is that they don’t necessarily have to live in the house they purchase. I know I’m a bad example of this because I am a homeowner in the DC area, but even if you’re a renter, it might make sense to buy a house elsewhere.

Why? Many reasons. You can build equity. Interest rates are the lowest they’ve been in over twelve years right now. You can have a place to sneak away. You can earn rental income.

I bought my place for (wait for it…) $123,000. YUP. It’s only a 1 bedroom/1 bathroom place but that’s all I need. With a 2.9% interest rate, my monthly mortgage payment is less than many people’s car payments. I plan on renting it out for June and August in 2021, which will bring in between $4,000 and $5,000 which will almost cover my mortgage payments for the entire year. See? Win win.

How to look for a second home property if you live in an expensive area.

If you don’t know the resort-y areas near you, a simple Air BnB or VRBO search will help. Where are people looking to rent? How much are houses there? Off the top of my head, I know that the Shenandoah Valley outside DC is a HUGE area for people to escape the city life in the summer and fall. Heck, if you can find a place with a cozy fireplace, you might even be able to rent it in the winter too. A quick realtor.com search will show you that, in Shenandoah for example, you can get a house for less than $200K which, with a 20% down payment, will bring your monthly payment to $674 with a 2.9% interest rate.

Shenandoah isn’t the only example, of course. There are steals in Ocean City, cities on the Jersey Shore, down near Virginia Beach, even up in West Virginia. And those are just the easily drivable places. If you start looking in PA, you have the Poconos. Up in Ohio (which is only a six hour drive), there’s my area.. In fact, there are some units in my complex for sale.. Want to be my neighbor? 🙂

Are you a second home person? Did you think it was something that was worth thinking about now? Real estate is a fun investment that I’m certainly enjoying so far! Thanks for reading and have a great weekend!