Second home vs. investment property: What’s the difference?
The way mortgage lenders classify vacation homes and investment properties varies from lender to lender, but here are a few rules of thumb:A second home
- Must be lived in/used by the owner (you) at least 14 days of the year
- Cannot be rented out more than 180 days of the year
- Must be a minimum of 50 miles from your primary residence
An investment property
- Is occupied by you fewer than 14 days of the year
- May generate income through long-term rental, short-term rental or “flipping”
- Can be within 50 miles of your primary residence