Buying a Second Home

I have a single-family home that I live in, and I’m looking to buy a second home. I want to find a fixer-upper and spend a few months to a year fixing it up. What type of loan would be best for this? Also, how will having a second home impact my taxes? Any advice would be great.

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There are loans available for renovating or constructing a second home. Which state are you in?

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It shouldn’t affect your taxes negatively, but it might be a good idea to consult with your accountant to explore any potential tax write-offs. For example, you could consider renting it out occasionally to qualify for deductions, or if you’re self-employed, you might be able to rent it to yourself and claim it as a deduction.

There are various ways to finance the rehab work, though you may need to hire a third-party contractor to handle the project.