money spent compared to. next home: what is the improvement?
find out the difference between a second family and you will investment property, to check out how it could affect the kind of financing you should buy.
individuals possibly use the conditions “investment property” and you will “second house” interchangeably to describe houses it is not its number 1 quarters. but these style of services will vary.
an investment property was a house you buy to generate income, wish to rent to tenants or flip and sell to possess an excellent profit. but not, an extra residence is an individual-family hold which you want to reside in for almost all regarding the season otherwise head to daily.
what is an investment property?

not your primary house, and you will
is paid for or familiar with earn money, cash in on enjoy, or take advantage of certain taxation experts.

essentially, if you purchase a residential property which you can use to generate an excellent funds, in place of since the an individual household for you plus friends, you to definitely home is noticed a residential property. […]