You spend a long weekend in Sandbridge or a week in Corolla, and somewhere between the morning coffee and the drive home, you start looking at listings. I get the appeal. There’s something about having a place you can go back to whenever you want.
If you’re thinking about buying a second home in Virginia or North Carolina, I’d start with a simple question. What would make owning this home worthwhile for you? Your answer might be more weekends with family, rental income, or a little of both. Once you know what you want from the home, it’s easier to tell which properties are worth a closer look.
Picture an ordinary weekend there
When you tour a second home, it’s easy to picture everyone together on a beautiful summer weekend. I’d also picture a regular Friday in October. What time could you get out of town? How long would the drive feel after work? Would you still go if the forecast called for rain?
If you’re starting from Hampton Roads, try driving to the property at the time you’d usually leave. Spend a little time in the area outside peak season, too. A home that’s easy to get to and enjoyable year-round might be the one you end up using most.
Give yourself a realistic ownership budget
The mortgage payment is only one line on the worksheet. Add property taxes, insurance, utilities, association dues, and maintenance. Then think about what you’ll spend getting the house ready, from furniture and appliances to anything that needs attention right away.
For a coastal home, I’d get an insurance quote for the specific address early in the process. Ask what the policy covers, how wind and flood are handled, and what you’d pay out of pocket if you filed a claim. During the inspection, pay close attention to the things you’ll have to maintain from a distance, like the deck, exterior stairs, and outdoor HVAC equipment.
Once you have an annual total, compare it with what you already spend on trips and how often you’d use the home. You might be comfortable spending more to have a familiar place where family can gather. Putting a number on that difference makes it easier to decide.
If you plan to rent it, look past the summer bookings
A listing that says “great rental history” gives us something to follow up on. Ask for monthly owner statements and look at what the seller actually received after management and other rental expenses. Find out how many weeks the owner kept for personal use, too. If you want the house every July, build your estimate around the weeks you’d actually make available.
Before relying on that income, verify the rental rules for the address. In Virginia Beach, for example, short-term rentals require annual registration and planning approval. For a North Carolina property, check with the town or county that handles zoning for that address. Review the association rules separately if the home is in a condo or HOA community. cor.virginiabeach.gov
Tell your lender how you plan to use the home before you settle on a price range. A second home and an investment property can have different financing requirements, and projected rental income may be treated differently depending on the loan. If you’ll use the property yourself and rent it out, ask your tax professional how to track personal and rental days. www.fanniemae.com
When does buying a second home make sense?
If it’s mainly a getaway, ask whether you’d still feel good about buying it after a year with few or no bookings. If you’re buying for income, see how the budget holds up with a slower season and a major repair. If you want both, start by marking the dates you want for yourself and run the rental numbers from there.
The best fit might be the place you can drive to on a whim, the condo you feel comfortable leaving for a month, or the beach house whose rental records back up the asking price. What matters is how well the property fits the way you’ll actually use it.
If you’re looking at second homes in Virginia or North Carolina, I’d be happy to help you compare the homes you’re considering and figure out what questions to ask before you make an offer. Get in touch with Katie Burke Homes.