This is a YouTube video titled "🏖 Second Home 🏖" containing a monologue by Derek McGowan recorded on November 28, 2021. In this content, Derek explains the criteria and distinctions for classifying a property as a second home versus an investment property, including occupancy requirements, distance from primary residence, financing rules, and other relevant details.
Second home is like a vacation property. Now, it's very important to make sure you differentiate it from an investment property. So this must be a place that you plan on occupying at least some point throughout the year. It also is supposed to be about 100 miles or more away from your primary residence. If it's right down the street, you're probably renting that out. You're not vacationing down the street. There is some leeway, but it has to make sense. If it's less than 100 miles away, it must be in a vacation destination. Also must be a single unit. If it's multiple unit, the idea is the person is probably renting it out. Must be conventional financing. FHA and VA are for primary residences only, 10% minimum down payment and no rental or timeshare agreements on the property.
