If you are in the enviable position of looking to buy a second property in Sedona then congratulations. The equity that you stand to gain from this purchase can be considerable, just remember to plan properly, to maximize your gain. The first step in this process is to decide what the second Sedona home will be utilized for. Is it a vacation home? Perhaps a long or short-term rental? Either way, the more detailed about your forward planning you are, the smoother the process will be.
If you are looking at this purchase as a source of income then certain steps should be taken to ensure the home will bring in as much money as possible, thus allowing you to pay off the mortgage quicker. For this type of investment, the cleaner the better. Nice homes are in high demand, and they fetch a good monthly rate. Also, ask yourself, “am I ready to be a landlord?” This will involve the task of finding and maintaining good tenants, and sometimes having to do what’s right for you and your property, not what’s right for the renters. If you have the tendency to be “too nice,” then being a land lord may not be for you. You can also hire a property management firm to take care of finding tenants, writing the lease, collecting the rent and all the other things that need to get done. They can do this for a portion of the rent and you can usually deduct it from your taxes.
Regardless what your Sedona property is intended for, be sure to cover all the bases. Be as diligent as you were when buying your first Sedona home. You will be able to apply lessons you learned during that process on the new home, and avoid any mistakes or area of stress that were present in the first purchase. Many people buy a second house only to find themselves buying yet another. Once you start to climb the equity ladder its kind of hard to stop!
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