Home Buying in Tampa>Question Details

Edngirlie, Home Buyer in Tampa, FL

I live in Hillsborough County in Florida, can I own a 2nd home near my current home and rent it out?

Asked by Edngirlie, Tampa, FL Wed Mar 2, 2011

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BEST ANSWER
Edngirlie, of course you can own 2 or more homes and rent them out. When you acquire another home with the intent of renting it out it falls under the category of "INVESTMENT".

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.
Web Reference: http://BrockRealty-Inc.com
3 votes Thank Flag Link Wed Mar 2, 2011
The simple answer to your question is "yes", you can buy as many homes as you can afford, especially if you are paying cash. There are no limits! Obtaining a mortgage for investment properties is an entirely different question.

Steven J. Pahl
Keller Williams Tampa Properties
3450 Buschwood Park Drive Suite 345
Tampa, FL 33618

813-319-6423 Office
813-763-7245 Cell

Steve@StevenPahl.com
1 vote Thank Flag Link Wed Mar 2, 2011
Hello,

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.

Best Regards,
Beate Rodriguez
Lic. Loan Originator
1 vote Thank Flag Link Wed Mar 2, 2011
Since you are specifically stating that you will rent it out, that is not a second home but rather an investment home. Not sure if you are using the term second home interchangeably with investment home. For an investment home you will need at least 20% down and have a certain minimum score requirements which varies from lender to lender. As someone below said, you will also be required to have at least 6 months reserves which include your new and the present mortgage payments. To qualify as second home it would have to be a certain distance from your present home, typically at least 50 miles, but it varies from lender to lender as it is underwriter discretion. A second home is a home intended for you to go over weekends, or go on vacation to get away from it all. It would be hard to apply that definition if the new home is just a few miles away.
1 vote Thank Flag Link Wed Mar 2, 2011
You can buy as many homes as you can afford, but a rental is called an investment property and your down payment and interest rate will different than it would be if it was a primary or second home. Call your local mortgage person. A true second home (that is not rented) must be at least 50 miles from your current home.
1 vote Thank Flag Link Wed Mar 2, 2011
I can recommend you contact http://www.KristineBredeau.com with HomeBanc. She can tell you exactly how many miles your "2nd Home" would need to be to fall under those mortgage guidelines. I think that's the question you're asking...

You're welcome to browse listings on my site: http://www.SoldOnTampa.com

Hope this helps.

Alma Rose Kee PA
Future Home Realty 33626
813.244.9898
http://www.SoldOnTampa.com
1 vote Thank Flag Link Wed Mar 2, 2011
It depends. Your best bet is to talk to a mortgage company and see if you qualify based on income & debt ratios. Some mortgage companies will want you to show you have 6 months worth of rental income before they will let you purchase a 2nd home - which is tricky - you'd have to move some where and rent for 6 months to do that! It all depends on what you qualify for though. Let me know if you need a recommendation of a good mortgage lender!
1 vote Thank Flag Link Wed Mar 2, 2011
yes,you can rent out a house near you. i do.
0 votes Thank Flag Link Mon May 7, 2012
Yes you can, however you are only entitled to homestead exemption on the one you live in. However, you cannot buy as many homes as you'd like with conventional mortgage...too correct a previous poster. There is a limit. Cash okay.

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
Remax Realtec
Tampa 813-886-2356

Phylliscrosby@tampabay.rr.com
0 votes Thank Flag Link Fri Mar 4, 2011
Not sure why so many of the answers assume institutional financing, as if it's the only way to acquire property. Especially in this market. The world is your oyster. You can get all kinds of terms from sellers. We often get zero down 100% financing from sellers.
0 votes Thank Flag Link Wed Mar 2, 2011
It looks like Brock gave you the best answer, regardless of who got a Thumbs up. Unless we know whether you plan to mortgage the property, your question can't really be answered.
0 votes Thank Flag Link Wed Mar 2, 2011
Hi!

The short answer is yes. You will need to decide which home will be your primary residence and be considered your homestead.

If you decide to finance check with your lender to see what they require.

Good Luck,
0 votes Thank Flag Link Wed Mar 2, 2011
Make sure the deed retrictions allow you to rent it (Better to not buy in a deed retricted community) most subdivisions will allow you to rent it.
0 votes Thank Flag Link Wed Mar 2, 2011
Edngirlie;
If you are FHA'ing the loan there may be an issue in doing this; so I would check with your lender on this.
Otherwise you should be good to go.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Wed Mar 2, 2011
Yes you can but you can only homestead the home where you live,meaning your taxes on your home
0 votes Thank Flag Link Wed Mar 2, 2011
Sure you can. As long as you can afford to maintain both, I don't see a reason why not.
Good luck!
0 votes Thank Flag Link Wed Mar 2, 2011
Of course! You should however consult a tax attorney or CPA. As an "investor" you will have to report your rental income. In addition, if you need to finance the 2nd home you'll have to put down at least 20% (and probably show XX months of reserves), and may have a higher interest rate since it is an investment property. Good luck!
Web Reference: http://www.sallygrenier.com
0 votes Thank Flag Link Wed Mar 2, 2011
Yes. What is your concern.
0 votes Thank Flag Link Wed Mar 2, 2011
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