Kennedy Real Estate Solutions
Kevin and Sharon Kennedy, Kennedy Real Estate SolutionsPhone: (860) 304-4433
Email: [email protected]

Investing in a Second Property

by Kevin and Sharon Kennedy 03/20/2019

Is investing in a second property the best decision for you? If you've found yourself with a little bit of extra liquidity, you might be considering investing in additional property, a startup company, or adding to your general investment fund. What makes a second home or property a good move for your future?

Family Memories

If you have the opportunity to purchase a second home, consider a vacation house for your family. Do you have a favorite family vacation spot that you visit every year? Buying a second home in this area instead of renting a house or cabin every year for the next 20 years is an investment in a second home that starts earning equity from your vacations. Establish a place for your family to make countless memories together. If you vacation with your extended family, consider co-investing with your family members to get more use out of the space. You can take turns using the house and have a wonderful place to gather everyone together for holidays and special events. If you decide to invest with other people, make sure you designate how the property will transfer to your heirs and consider establishing an LLC that oversees the transfer of property. If you purchase the home yourself, you can rent the space to your relatives for their vacations, or (bonus!) turn it into a vacation rental during the time you aren't able to use it. See more ideas for cash flow returns on a second property investment below.

Income Opportunities

If you don't see yourself establishing a vacation home, but you think you want to use your funds to invest in another property think about the different opportunities to create an income property for yourself. Purchasing a rental home or multi-family building can be a significant cash flow option if you're able to manage the ongoing mortgage commitment, tax responsibilities, and upkeep. Find a property that you can successfully manage and start reaping the benefits of your new investment. Your investment property can continue to serve you for years and may even be the right solution for your retirement plan when you go to resell it.

Things to Consider

There are a few aspects of your current situation you should review before committing to your second property. Will your financial situation remain stable for the foreseeable future? Will you be able to continue managing payments and upkeep if your job changes or if you don't live in the area of your investment? Is the property in an area that vacationers or renters find desirable? Will you be able to maximize cash flow if or when you aren't using the property? If you determine the answer is yes to these questions, then investing in a second property might be just the next move for your portfolio. 

Before you invest, speak with your trusted real estate professional to make a plan for securing the best investment for your life and future.

About the Author
Author

Kevin and Sharon Kennedy

"A Personalized Approach to all your Real Estate Needs" Sharon and Kevin Kennedy have built Kennedy Real Estate Solutions with the premise of building relationships and finding creative solutions to unique real estate situations, both residential and commercial. The Kennedy’s work with their clients with the intent of getting a full understanding of the client’s current situation and desired real estate goals. With this understanding and the knowledge that has been acquired from over 50-years of real estate experience, Sharon and Kevin offer guidance and advice best suited for the individual client. Buying and selling a home can be an emotional and trying time for most folks. The Kennedy’s are sensitive to their client’s needs in this ever changing real estate environment. They are with them every step of the way and will help to address whatever challenges arise. About Kevin J Kennedy, Broker/Owner Kevin J. Kennedy is a dedicated and successful Realtor/ Broker. He helps his clients buy and sell homes throughout the beautiful Lower Connecticut River Valley and Connecticut Shoreline. Since buying or selling a home is a major life event for most people, both financially and emotionally, it is important to have an agent you can trust and with whom you feel comfortable. An essential part in creating a great real estate experience is choosing an agent who is detail-oriented, has up-to-date market knowledge, and is a skilled negotiator. Kevin offers all of these qualities. Today, many buyers and sellers insist on the advantages of cutting edge technology. Via his web site and IDX property finder, Kevin delivers. Using these state-of-the-art tools, his buyers save time and energy during the house-hunting process, and his sellers are able to reach numerous prospective buyers. Kevin is highly regarded in the real estate community and is a consistent top producer. He lives in Old Saybrook, is an instructor of T'ai Chi and QiGong, and enjoys photography, music, and kayaking. Call Kevin at 860-304-4433 About Sharon S. Kennedy, Realtor Sharon grew up in Old Saybrook. Her family owned and operated one of the first local real estate companies. She first received her real estate license in 1988 and now has more than 35 years of real estate negotiation experience. Sharon enjoys gardening, spending time with her horses, chickens, cats and dog along with preparing wonderful vegetarian meals for her family. She is knowledgeable in homeopathy and natural remedies. Today many buyers and sellers insist on the advantages of cutting edge technologies, Via their web site and IDX property finder, Kevin and Sharon provide state-of-the-art tools. Contact them today to discuss your real estate needs.