Second Home or Multi-Unit to rent out?
I have friends who are getting second mortgages to buy second homes to rent
out.
I've told them they'd be better off buying a four-plex or similar multi-unit
property.
Can anyone give good reasons for either choice?
Getting a second mortgage would be cheaper than getting financing on investment real estate sometimes.
But getting a four-plex is better for success. The reason behind this is because even if half of your places are vacant, you still have income coming in on the other units.