A SECOND HOME would have to have a different zip code from your homesteaded property, To be different, it would be in a different location and/or have a different use. For example, let's say you live in New Tampa in a 3BD/2BA home and purchased a beach condo on Siesta Key. The Siesta Key condo (for financing purposes) could fall under the category of a SECOND HOME. The condo association will carry rental restrictions that will most likely allow short term rentals. If you utilize the condo for your personal use and as a short term rental then you would be working with your tax professional regarding the associated costs and expenses as releated to a second home.
If you clearly wish to purchase a home with the intent of renting it out then it would fall under the guideline as an INVESTMENT property. As it will not qualify for homestead, you can hold title in your name or within an entity, i.e., LLC, S Corp, or Trust. The latter provide you with greater liability protection.
When you purchase the property, if you pay CASH, what you do with the property is not relevant as you do not have a lender as a silent partner..
If you apply for an INVESTMENT property mortgage then the underwriting guidelines will be different as well as the requirements for your downpayment, your interest rate and also the cost of your appraisal. This information is disclosed to your lender and clearly shown on the mortgage loan application known as a 1003.
If you apply for a mortgage saying you are buying the property as your homestead and then utilize it as an investment property technically this is fraud and could get you into some hot water.
Steven J. Pahl
Keller Williams Tampa Properties
3450 Buschwood Park Drive Suite 345
Tampa, FL 33618
I have good news and bad news for you. The bad news are, no you can not have a 2nd home near your primary residence and rent it out.
A second home is defined as a one-unit property that's located within a reasonable distance from your primary residence. It can be a home that you occupy for some portion of the year. However, to be a second home, it must not be rented.
The good news are, you can purchase as many "Investment Properties" (which you can rent out) as you like, as long as you can afford to purchase them.
There are different mortgage loan guidelines for investment properties (e.g. amount of down payment) and I would be more than happy to go over these with you. Please feel free to contact me.
I wish you the best purchasing investment properties during this great real estate market.
Lic. Loan Originator
You're welcome to browse listings on my site: http://www.SoldOnTampa.com
Hope this helps.
Alma Rose Kee PA
Future Home Realty 33626
I specialize in Bank owned homes.. I just sold a Carrollwood Townhouse 1448 sq. ft. for $45,000- how that for a steal!
Call me to find you the best deals for a second home.
Phyllis Crosby, Realtor