Many second home owners complain about the cost of upkeep with a second home. When considering that second home purchase, consider much more than the initial purchase price. There should be ample cash reserves for additional insurance, hiring upkeep or management companies. If you plan to rent the property, determine the income as it may not be enough to cover the monthly expenses especially in off-seasons.

Location is very important for rental or resale purposes. You will need to research and make a list of your preferences. Look for market trends, home comparisons, resale values, amenities, taxes and the quality of medical facilities and most of all convenience.

The type of property is also important with upkeep factors. Condos and townhomes have less maintenance and upkeep. Consider if your property will have a HOA and factor in that cost.

Owners of second homes have to plan for property taxes and if renting out the home, income tax. Location of a property from the city to the county can make a huge difference on your property tax bill.

Most homes are purchased with a down payment and a loan. Check out all your available options from home equity loans to borrowing against a life insurance policy. There are some homeowners who find creative financing from family and friends. There are other people who share the property with another purchaser. Shared-ownership terms should be drafted in a written agreement.

Some second homeowners rent out their properties long term for profit. Check out legal sources and be ready to find good tenants, know the laws and be prepared for repairs and management duties.

Before purchase, get a home inspection so you will be prepared for repair issues. Don’t forget the title insurance, hazard insurance, liability insurance. You may also purchase a home warranty to take care of home system repairs if desired.

Consider these tips before buying your second home.