Zen room ideas: 7 retreat spaces for your home or second home

Buying property abroad lets you immerse yourself in a different culture and may offer a lower cost of living than the U.S. However, the complexities of making this kind of purchase can feel intimidating. From navigating legal regulations and language barriers to working with local vendors and securing financing, buying a home abroad requires careful consideration and expert guidance.  Keep reading to learn more about what you need to consider when buying property abroad. Tip 1: Define your goals for the property Ask yourself how you plan to use your vacation home. Knowing your intended use upfront will shape every decision that follows, from where you buy to how you structure ownership. Tip 2: Think about where you want to buy If you’re unsure where you want to purchase a second home abroad, ask yourself the following questions: These questions can help you determine where you would like to purchase property. Even if you already have a dream destination in mind, evaluate the market before committing. When weighing locations, consider a few key factors. Tip 3: Understand foreign ownership laws Most countries allow Americans to buy property freely, but the rules vary enough by market that it’s worth a quick check before you get too far into your search. Two exceptions worth knowing:  Beyond the rules themselves, it’s important to know that legal representation is separate from your real estate agent. An agent helps you find and negotiate a property. An attorney or notary handles the transaction. In France, a notaire is legally required for every sale. Spain requires a notario. For buyers managing this across languages and time zones, Tip 4: Find a local agent and attorney  Learning how to buy property abroad is much easier with the right people in your corner, and those are two distinct roles. A local agent brings market knowledge and helps you search and negotiate when buying. An attorney handles the legal side: title review, contract drafting, and compliance with local regulations.  Tip 5: Understand your financing options Here’s a breakdown of the most common paths to financing a home abroad: Tip 6: Know your U.S. tax obligations If you’re buying property overseas, U.S. tax obligations don’t stop at the border. Here are the key tax obligations to know: You’ll want a tax expert in both the U.S. and your destination country, along with a local legal expert, to help you navigate these requirements before closing. Tip 7: Review residency and visa requirements If you plan to spend extended time or Other countries may restrict your length of stay without a visa or have separate requirements for property owners. Research the options available in your destination country or ask your local attorney to walk you through what applies to your situation. Tip 8: Plan for ongoing property management While away from your property, someone still needs to take care of the home’s security, cleaning and maintenance. And when something goes wrong, you need someone local who can respond quickly. When evaluating overseas For buyers who want this handled from day one, Pacaso’s co-ownership model includes a dedicated local property manager in each of its international markets. Security, cleaning, maintenance and vendor coordination are all managed on your behalf, so your home is ready when you arrive and looked after when you’re not there. What are the benefits of buying property abroad? Buying property abroad opens up advantages that go well beyond what a vacation rental or hotel can offer. Confidently buy a vacation property abroad with Pacaso Pacaso was built specifically for buyers who want the experience of owning a luxury home in a world-class destination without the full complexity of a solo cross-border purchase. Through Pacaso's Ready to find your home abroad? Explore our

Dreaming of buying a second home? Despite market shifts, it’s still within reach. Whether you’re seeking a mountain escape, a beach retreat or a cozy getaway, understanding the realities of purchasing a vacation property is key. Buying a second home can feel overwhelming between higher costs, financing nuances, ongoing upkeep and limited time to enjoy the home. That’s why Let’s start with the seven steps of how to buy a second home: 1. Determining your second home budget involves assessing your current and future finances. Consider income, expenses and additional costs like taxes and maintenance, especially if you will be assuming a second mortgage. A It’s also important to think long-term. Will this home primarily serve as a personal getaway, a future retirement retreat, or a potential investment? Aligning your second home goals with your broader financial plan helps ensure the purchase supports your lifestyle, not strains it. Evaluate financing options and consult a financial advisor for insights into tax implications and investment alignment. This thorough analysis ensures that your second home purchase aligns with your financial goals. Second home expenses In addition to the purchase price, be sure to factor in these expenses when budgeting for a second home: Although second homes come with added expenses, they can also offer tax advantages that help offset costs. As you’re crunching the numbers, remember your second home can also be a source of rental income and tax breaks. Depending on how your second home is classified and used, you may be able to: These are great ways to make owning a second home more feasible. However, 2. Consider your financing options Lenders often see second homes as being at higher risk for loan repayment. For this reason, Here are some things to consider when financing a second home: It’s important to note that Buying a second home doesn’t have to be a solo endeavor. The standard minimum What are the no- and low-down-payment options? VA loans are available to eligible veterans, active-duty service members, surviving spouses, and those receiving VA disability benefits. They offer zero-down financing and are one of the few truly no-money-down paths available. Because VA loans are government-backed, they tend to carry more favorable terms than conventional second home loans. Note that VA loan eligibility for a second home depends on how the property is used and your remaining entitlement. If the seller's existing mortgage is assumable, you may be able to take over their loan terms, including a lower interest rate, without a new down payment. This option is relatively rare but can be a meaningful cost saver in a high-rate environment. If you have equity built up in your primary residence, a home equity loan or For homeowners 62 and older, a reverse mortgage allows you to access existing home equity without monthly mortgage payments. The funds can be directed toward a second home purchase. The loan is repaid when the borrower sells the home, moves out, or passes away. This option comes with high fees and significant complexity; consult a financial advisor before pursuing it. A gift of equity occurs when a family member or close contact sells you a property below market value. If the gift amount equals 20% or more of the property's fair market value, you can avoid a traditional down payment. Tax implications apply, so consult a tax professional before proceeding. A lease-option agreement lets you rent a property with the right to purchase it later. A portion of your rent payments may be credited toward the purchase price, reducing the down payment you need at closing. Negotiate these terms upfront with the help of a real estate attorney. In a seller-financed deal, the seller acts as the lender and you negotiate terms directly, potentially including a reduced or no down payment. Seller financing does not include standard mortgage protections, so the legal safeguards of a traditional loan may not apply. Proceed carefully with legal counsel. Adding a co-borrower who can contribute the down payment is another path. Shared financing reduces the burden on either party, though it also means shared ownership and responsibility. A formal co-ownership agreement is strongly recommended. What are the key considerations before going no-money-down? Reducing or eliminating your down payment does not eliminate costs entirely. Before pursuing a no-down-payment strategy, factor in the following: 3. Compare lenders When comparing second home lenders, it's essential to conduct a thorough evaluation to secure the best financing option tailored to your specific needs. Consider the following factors and use them as a basis for comparison: By comparing these factors among different lenders, you can make an informed decision that aligns with your financial goals and secures the most favorable mortgage terms. 4. Get pre-approved Getting pre-approved for a second home gives you a clear picture of what you can afford and strengthens your position when making an offer. Lenders will review your income, assets and debts to determine an approved loan amount. Consult multiple lenders to compare interest rates and terms. Keep in mind that because lenders may see 5. Find a location and a local agent Once you decide how to use your second home, you can hone in on the best second home locations. Ask yourself: Confirming your reason for owning a second home can help you decide on the perfect destination for your new vacation spot. Choosing the right agent Finding a knowledgeable agent in your target market can significantly decrease your workload in your second home search. You can use their local knowledge to help you with logistics and make an informed decision. Research local agents online, cross-reference reviews and ask for recommendations from your friends and family when possible. 6. Make an offer Buying a second home will be a familiar process if you’re already a homeowner: You make an offer, negotiate, come to an agreement and prepare for closing. Prior to closing, you will: Once your offer is accepted, it’s time to begin the closing process for your new second home. 7. Begin closing After the seller accepts your offer, the second home closing process begins. This process involves several crucial steps: Although closing on your second home may appear overwhelming, a smooth closing is key to turning your house purchase into a dreamy second home getaway.  How does a second home differ from a primary residence? A second home and a primary residence aren't interchangeable in the eyes of the IRS or your lender. A primary residence is the property you live in most of the year and qualifies for benefits like the capital gains exclusion on sale, while a second home doesn't qualify for that exclusion or for homestead tax exemptions, even though mortgage interest deductions can still apply to both. If you're weighing whether your second home could eventually become your primary residence, see our full breakdown of What changes if I buy a second home in another state? Buying a second home doesn't mean staying close to home, but an out-of-state purchase adds a few extra wrinkles: remote tours, paperwork you can't always handle in person, and state-specific tax and closing requirements. Our guide to What should I know about buying property abroad? An international second home comes with its own set of considerations: foreign ownership laws, financing options, U.S. tax obligations, and visa or residency rules all vary by country. Our guide to What about buying a second home in Europe? Europe remains one of the most popular international destinations for second home buyers, thanks to deep, established real estate markets in cities like Paris and London and easy access to the surrounding region. Our guide to What are the current second home market trends? Second home demand shifts with interest rates, remote work patterns, and buyer priorities like sustainability and destination affordability, so it helps to know what's happening in the broader market before you buy. Check out the latest How do you know if you’re ready for a second home? When considering purchasing a second home, you'll want to evaluate your finances, lifestyle, and market conditions to determine whether it's the right time to purchase, but those factors are just the tip of the iceberg. Here are some of our team's top considerations for those considering a second place of residence. Down payments, interest rates and debt Assess your current financial situation to see if you can comfortably afford a If additional debt strains your financial resources, it may not be quite the Location and lifestyle fit The ideal second home also aligns seamlessly with your lifestyle. Prioritize locations that support your hobbies and desired activities, guaranteeing a frequent and enjoyable retreat. If you like to ski, for example, a Investment or personal escape? When deciding on the main goal for your second home, it's crucial to determine if you're primarily interested in generating rental income, building long-term investment appreciation, or creating a personal retreat. Each of these objectives will significantly affect your approach to buying, managing, financing, and handling taxes for the property. Time investment Owning a second home comes with significant responsibilities. Are you prepared to manage the upkeep of two properties? This includes regular maintenance, potential repairs and the time and financial commitment of traveling between both homes. If not, are you willing and able to hire a property management company or other professionals to handle these tasks?  Remember that delegating these responsibilities will add to the overall cost of owning a second home. Market timing Finally, when looking to take a big step forward in your second home journey, you'll want to look at the home market conditions. Many properties are available in a buyer's market, and buyers have more negotiating power. In a seller's market, high demand and low inventory give sellers the upper hand.  Understanding the current market conditions will help you set realistic expectations, develop an effective negotiation strategy and help you determine if now is the right time to buy.  How do I buy a second home with Pacaso? Now that you know how to buy a second home, it’s time to explore your options. If turnkey luxury and simplicity appeal to you, co-ownership with Pacaso offers a modern alternative to traditional second home ownership. If you’re unfamiliar with Here are 11 steps to follow if you’re wondering how to buy a second home with Pacaso.  1. Find a second home you love From there, you can explore each destination and the homes available within it, picturing what life could look like in every location. Each destination page brings the area to life, showcasing Pacaso homes through rich photography, detailed descriptions, and a true sense of how it feels to live there. Every Pacaso home is hand-selected and 2. Talk to us We’re excited to share all the details about our homes. If you’re not sure which one is best for your needs, we’ll go through each home’s unique attributes and location to help you decide.  You can easily schedule a time to talk with one of our Crew members from any listing details page, or if you have general questions about co-ownership, you’re welcome to get in touch via our 3. Take a tour  Touring is an important step in buying a vacation home. We’ll give you all the information we have about the home, but seeing is believing. While you’re on the call with our Crew member, they can arrange a time for you to tour the home. Buyers can schedule a virtual tour, an in-person tour, or 4. Say yes!       You talked, you toured, you fell in love, and you’ve decided on owning a vacation home! We’ll walk you through the purchase process and paperwork, and our Crew will make sure you understand all the terminology related to co-ownership, such as: We want you to feel confident in the process, so ask as many questions as you’d like. Once you’re ready to proceed, you’ll reserve your share with a 10% deposit. 5. Secure second home financing  If you’re interested in The approval process is straightforward and fast. Once all documents are provided, typically your most recent pay stub, bank statement and tax return, approval takes just a few days. You also have the option to pay all cash or take out a HELOC or personal line of credit through a lender of your choice. 6. Close on your new second home Your journey begins by reserving your share and signing the residential purchase agreement. You’ll submit a deposit equal to 10% of the share price, officially kicking off the closing process.  From there, you’ll receive two sets of documents to review and sign. These include familiar items, such as the inspection report and seller disclosures, as well as Pacaso-specific agreements that outline how the home is managed and owned through our property LLC structure. If you choose to finance a portion of your purchase, our team will work with you to collect the required financial information and keep things moving smoothly. As closing approaches, we’ll schedule a check-in call to review your final closing statement, confirm wire instructions for the remaining funds, and verify that everything is in place, including your first stay date. Once the transaction is complete, congratulations are in order: you’re officially a Pacaso owner. After closing, you’ll transition into onboarding, where you’ll meet your Home Manager, download the Pacaso app, and start booking stays. From there, all that’s left to do is settle in and enjoy your new second home. 7. Get ready for vacation home bliss Congratulations on owning a vacation home with Pacaso! Our commitment to owners doesn’t end at closing. We assign a 8. Book your stays You can begin scheduling stays after completion, and the property will be ready for your enjoyment as soon as all upgrades to the property are completed. As an owner, you have ongoing access to the property, and you can quickly and easily book multiple stays with the Pacaso app, powered by our 9. Experience the ease of fully managed ownership One of the best things about buying a vacation home? It’s all yours! One of the worst things? It’s all your responsibility. The hassles of vacation home ownership can take a lot of joy out of the experience.  Pacaso’s fully managed co-ownership model gives you the benefits of vacation home ownership without all the headaches. We take care of maintenance, repairs and cleaning; manage payments for utilities, insurance and taxes; oversee 10. Flex your ownership muscles Pacaso’s management services are designed to make your ownership experience easier, but that doesn’t mean you don’t have a voice. In fact, you and your property’s co-owners have 100% ownership of the property once all shares are sold, which means your co-ownership group has decision-making authority.   Here’s how this works in practice: Owners can bring major issues about their property to a vote of the co-ownership group, and every share owned holds one vote. A major issue might be a costly property upgrade, like the installation of a hot tub.  To call for a vote, you would get in touch with your home management team. Routine maintenance and necessary repairs (such as replacing a broken dishwasher) are handled by Pacaso and do not require a vote. 11. Feel confident if it’s time to move on We think you’ll love your Pacaso for years to come, but life evolves, and your ownership can evolve with it. If your needs change, you’re free to Why is buying a second home with Pacaso the smart choice? For buyers who want to reduce upfront costs without the complexity of no-down-payment strategies, You can From luxury homes in premier destinations to professional property management, Pacaso provides everything you need to make ownership simpler and more enjoyable. Whether you're just beginning to explore or ready to take the next step,

When buyers ask what a turnkey home entails, they’re usually trying to understand whether a house truly requires zero renovation work before it’s livable. While typical turnkey properties aren’t automatically furnished, many homes in luxury and second-home markets do include curated furnishings, décor and smart-home features to create a genuinely ready-to-use experience. How do turnkey homes work for second-home buyers? Turnkey homes offer unique value for second-home buyers, especially those For second-home owners, time is precious. A turnkey home lets you focus on making memories, not managing permits, interviewing contractors or coordinating deliveries. Whether your second home is a beach retreat or a And because everything is finished before closing, you experience faster access to the lifestyle you’re working toward, like meaningful time with family, stress-free travel and comfortable stays throughout the year. What’s included in a turnkey home? While every property is different, most turnkey homes share a set of core qualities. These features give buyers confidence that they won't need to make immediate repairs or updates. Here's what's usually included in a turnkey home: In Together, these features make it possible to start living in the home right away, with little to no prep work on your part. What are the pros of buying a turnkey home? Turnkey homes are appealing for many reasons. They offer an experience built on convenience, comfort, and clarity. Here are some of the benefits of buying a turnkey home: For second-home buyers, the ability to enjoy your home immediately without stress or delays is often the biggest advantage. What are the cons of buying a turnkey home? Turnkey homes also have a few trade-offs, especially if customization or cost savings are top priorities. Here’s what you’ll need to look out for when buying turnkey properties: A turnkey property should offer genuine readiness. The proper documentation will help you confirm that. Who is a turnkey home right for? Turnkey homes are an excellent fit for buyers who want to spend less time coordinating projects and more time actually enjoying their home. They’re especially appealing to people with full schedules who prefer a space that’s fully prepared from day one. Out-of-state and On the other hand, buyers who love hands-on customization or who enjoy shaping a property to their exact preferences may feel limited by a home that’s already completed. Those who thrive on renovation projects often find a fixer-upper more satisfying. These buyers typically prioritize the control and potential transformation that come with renovating, while turnkey buyers prioritize convenience, predictability and immediate comfort. What should you consider before buying a turnkey home? Before buying a turnkey home, it’s important to take a thoughtful look at the property’s quality, history and documentation so you know exactly what “move-in ready” truly means. Even when a home is labeled turnkey property or turnkey home in real estate listings, the level of work completed can vary widely, so due diligence is essential. Questions to ask the builder or seller When evaluating what is included in a turnkey home, ask the builder or seller detailed questions to better understand the scope and quality of updates. Confirm whether improvements were cosmetic or structural, how recently they were completed and whether licensed contractors performed the work.  Here are some questions to ask during the walkthrough: How do you verify a listing is truly move-in ready? To verify that a listing is genuinely turnkey, request documentation that reflects the quality of the work. This may include inspection reports, permits for structural changes, receipts from contractors or proof of recent servicing for major systems.  A true turnkey property will have consistent updates across the home, modern mechanical systems and completed spaces with no unfinished rooms or outdated features. When inspecting the home, pay attention to common signs that the home isn’t fully turnkey, such as mismatched finishes, older electrical panels, aging HVAC units or partially updated kitchens and bathrooms. What are the cost expectations for turnkey homes? Turnkey homes often come with a higher upfront purchase price because the improvements, design work and system updates have already been completed for you. However, buyers typically save money and time by avoiding renovation expenses, travel for project oversight and the unpredictable costs that come with fixer-uppers.  Turnkey home vs. fixer-upper: what’s the difference? A turnkey home is all about readiness. It’s complete, polished and requires no immediate work. A fixer-upper, on the other hand, is a property that needs renovation, repair or modernization before it feels complete. Turnkey homes streamline the experience from day one, allowing buyers to arrive and enjoy their vacation home with peace of mind. Fixer-uppers appeal to those who want the creative freedom to customize deeply and are comfortable navigating updates, delays and long-term projects. As you compare your options, weigh the immediate convenience and clarity of a turnkey home against the potentially lower upfront cost of a home that requires additional work. For many second-home buyers looking for ease, speed and comfort, the turnkey route offers a smoother path into ownership. How do you find a turnkey home?  Turnkey homes are especially common in second-home markets and desirable vacation destinations. When browsing listings, look for descriptions like “move-in ready” or “recently renovated.” Also, verify that the features align with your expectations for readiness, as not every home labeled “turnkey” meets the same standard of quality. Pacaso offers How can Pacaso help you find your turnkey home? Pacaso simplifies second home ownership by offering Whether you’re right-sizing your time away or exploring new destinations, Pacaso makes second-home living more seamless, ensuring your turnkey home is ready from the moment you walk in the door.

A second home down payment is more manageable than most buyers expect, as long as the funding source actually fits your financial picture. Most articles on the topic list ten options and leave you to figure out which one applies. This guide does the opposite: it shows you how much you actually need by loan type and price point, then walks through the smartest down payment options for four common buyer profiles. It also shows where co-ownership fits, because for many would-be buyers it solves the down payment problem before you ever fill out a mortgage application. For a conventional loan on a single-family second home, expect to put down at least 10% if your credit, debt-to-income ratio, and cash reserves are strong. In practice, most lenders push that closer to 15% to 20%, and jumbo loans on higher-priced vacation homes typically require 20% to 25% down.  The reason is risk: lenders assume that if a borrower runs into financial trouble, they will keep paying the mortgage on their primary residence before their vacation home, so they offset that risk with a larger second home down payment, a higher credit score floor, and stricter cash reserve requirements. Beyond the down payment itself, you should be ready to document two to six months of cash reserves on top of closing costs, hold a credit score of at least 640 (700+ is ideal), keep your total debt-to-income ratio at or below 43%, and confirm the home meets Fannie Mae and Freddie Mac second home occupancy rules, typically a one-unit, year-round property located at least 50 to 100 miles from your primary residence. Not every loan product is on the table when you are The percentage is only half the picture. The other half is the dollar figure you actually need at the closing table. Here is what a down payment on a vacation home looks like across common second home price points. For most buyers shopping in the $750,000 to $1.5 million range that defines today's second home market, that means $75,000 on the low end and $375,000 on the high end, before closing costs, furnishings, and reserves. The size of that check is exactly why The table above uses standard percentages, but your own numbers depend on your target price, loan type, and closing costs. Use the home down payment calculator below to enter your own inputs and see your results instantly, no manual math required. The calculator takes the guesswork out of affordability by breaking the math into a few simple steps. The more accurate your inputs, the more helpful your results will be. Here is a quick example: say your target home price is $1,000,000 and your lender requires 20% down. Multiply $1,000,000 by 0.20 and your down payment comes to $200,000. The same formula works at any price point or percentage, which is useful for a fast gut check before you open the calculator above. If you’re wondering how to buy a second home with a low down payment, co-ownership rewrites the math because the second home down payment is calculated against the share you actually buy, not the full value of the home. Pacaso allows buyers to purchase a share (1/8 to 1/2) of a fully managed luxury home through a For a deeper walk-through of how co-ownership works alongside conventional financing, see Pacaso's The right down payment options for second home purchases depend on where most of your wealth sits today. Four profiles cover the majority of real-world buyers. If your primary residence has appreciated and you have at least 30% to 40% equity, a HELOC or cash-out refinance is usually the cheapest and fastest source of down payment cash. You access the equity without selling, deduct mortgage interest where eligible, and avoid liquidating investments. Pacaso has a focused walk-through on using High earners often run into a timing problem rather than a wealth problem. The best down payment options here are a conventional loan with 10% down (accepting PMI), gift funds from family (documented per Fannie Mae guidelines), seller financing for part of the down payment, or co-ownership, which reduces the cash hurdle by an order of magnitude. If your wealth is concentrated in retirement accounts, taxable brokerage, or your existing home, asset-depletion mortgages and securities-backed lines of credit let you qualify and fund a second home down payment without selling appreciated positions or triggering big tax bills. Co-ownership is also a natural fit at this life stage, since you get the home you want without tying up retirement liquidity in a single illiquid asset. Expect to put at least 10% to 15% down, and budget for closing costs of 2% to 5% on top. If you are unsure whether to go full ownership or test the waters first, co-ownership is the lower-risk on-ramp: a deeded share, fully managed, with a clear resale path. Pacaso's Across the buyer profiles above, six funding sources do most of the work. The smartest choice is the one that fits your balance sheet, not the one with the lowest headline rate. For a side-by-side cost comparison of these paths, the Pacaso shrinks the second home down payment problem in three concrete ways.  The result is a true real estate asset, with a deeded LLC interest, in a luxury market you might otherwise be priced out of. To see what is available in your preferred destination,

If your dream is to We’ll share the top seven financing differences between investment properties and second homes to better understand both options. Plus, we’ll cover the tax considerations that may affect the type of second home you choose. What is a second home? A second home is a dwelling you own in addition to your Note that the way lenders classify second homes, vacation homes and investment properties can vary. What is an investment property? An investment property is an asset you buy with the intention of generating income through rent or value appreciation. A What are the 7 financial differences between a second home and an investment property? When it comes to financing, investment property and second home requirements can differ greatly. Investment properties tend to have stricter requirements, such as higher mortgage rates, a more substantial down payment and a higher credit score requirement. However, investment properties may result in substantial income or qualify for more desirable tax breaks.  Here’s an overview of how each To better understand how to begin financing investment property and 1. Mortgage interest rates Even with the same amount of money down and the same home loan length, a mortgage for an investment property will almost always carry a higher mortgage interest rate than a loan for a second home.  This is more than just a percentage; it results in a higher monthly payment, which can add tens or hundreds of dollars to the overall cost over a 15- or 30-year period. For example, a 1% increase in a mortgage rate (say, from 6% to 7%) on a $ 3 million home can add $700,000 in interest over the course of a 30-year loan. 2. Down payments According to the 3. Debt-to-income (DTI) ratio According to You should also aim for a DTI of 45% or less to increase your chances of securing an investment property or a second home mortgage. Keeping your debt ratio below 45% shows lenders that you’re financially stable and in control of your debt, which increases the chances of approval. This is because borrowers have more of a financial cushion, which lowers the perceived risk of non-payment to lenders. 4. Closing costs Lenders often charge higher origination fees (or closing costs) for investment properties than for second homes, often at a rate of 2% to 5% in comparison to the traditional 0.5% or 1% charged on a second home mortgage. 5. Income reporting Because an investment property can earn you additional income through rental or resale, mortgage lenders will often include potential future profits when calculating your DTI for a rental property. This, in turn, may mean that lenders will offer you a larger loan with more certainty that you can repay with rental proceeds. You won’t have that perk with 6. Number of units For a second home, you are only allowed a mortgage on a single-unit property. For an investment property or rental property, you can get a mortgage on a property of up to four units. This lets you scale your earnings and build a rental portfolio much quicker than buying separate accommodations. 7. Cash reserves Cash reserves are necessary for a second home or vacation home, which refers to an amount of liquid cash on hand for any home expenses. A mortgage for a second home will require you to have a minimum of two months of cash reserves on hand. For an investment property, you will need a minimum of six months’ cash reserves. Aside from having a firm grasp on investment property and second home mortgage rules, it’s important to understand the tax implications of both options. It’s also smart to consult with your tax adviser. Let’s break down the tax considerations and take a look at how the IRS handles second homes vs investment properties. 1. Mortgage interest While mortgage interest on a second home is often deductible for personal use, it can also be claimed as a business expense for an investment property, potentially providing 2. Property taxes You can potentially deduct the property 3. Rental income Income you earn from your 4. Home equity loan interest Interest on a home equity loan for a second home may be deductible. In contrast, interest on a home equity loan for an investment property is generally deductible as a business expense. Now that you’re aware of the major differences between a second home vs. an investment property, it’s time to decide which option best suits your needs. If you decide that With

Owning a second home sounds straightforward until you factor in renovations, property management, and the months of searching before you find the right place. Turnkey real estate companies solve that by handling setup and ongoing management, so ownership begins the moment you close. The challenge is that “turnkey” covers a wide range of models, and not all of them are built around personal use. Below, we cover some of the best turnkey real estate companies that focus on residential ownership, from LLC 1. Pacaso Pacaso is built for buyers who want a luxury second home without the overhead of managing one. It uses an LLC co-ownership model: each owner holds a share in a Every home comes fully furnished and professionally designed, and ongoing maintenance and day-to-day operations are managed by Pacaso’s in-house team. Owners book stays through the Pacaso currently operates in 40+ destinations across the U.S. and Europe, including Key features 2. Ember Ember offers two ownership tiers: Ember Limited, which keeps the home exclusive to owners and guests with 44+ nights per year per ⅛ share, and Ember Flex, which allows owners to make the home available as a  Key features 3. August Collections are offered in tiers at different price points and home sizes, allowing you to find an entry point that fits your budget. Just keep in mind, August is a European-only platform, so it’s worth learning about the process of Key features 4. Four Seasons Private Residences Properties are available across major cities and resort destinations worldwide, with new projects currently underway in Nashville, Las Vegas, Jacksonville, and Washington D.C. Ownership also includes Four Seasons Elite membership, which provides benefits and recognition across Four Seasons hotels and resorts globally. Key features 5. Roofstock Roofstock is a marketplace, not an operator. This means it facilitates the transaction but doesn’t own or manage the properties it lists, so quality can vary, and inspection reports should be reviewed carefully. Buyers who want to choose their own turnkey property management setup after closing are free to do so. Key features How to choose a turnkey real estate company Not every turnkey real estate company is built for the same buyer. Before committing, it helps to clarify what you want from ownership. Here are some things to consider: If a luxury second home with nothing to manage is what you’re looking for, Pacaso’s LLC co-ownership model is worth exploring first. Find your turnkey second home with Pacaso The best turnkey real estate companies handle the setup, the management, and everything in between. If you want a luxury second home with professional management and real property ownership built in, explore

The way you structure property ownership shapes everything from estate planning to what happens if a co-owner runs into debt. There are nine types of ownership in real estate, each with different rules around liability, control and transfer. Choosing the right one matters whether you’re buying a primary residence, buying alone or exploring second home Every situation is different, and the right ownership structure depends on your goals, your state and who you’re buying with. If you’re unsure which property type will work best, explore your options with a real estate attorney. 1. Sole ownership Sole ownership means one person holds the title to a property outright. That owner has full authority to sell, lease or transfer the property at any time, with no other parties involved in the decision. Property owned by a sole owner is sent into probate when the owner dies until the will is validated. 2. Joint tenancy with rights of survivorship (JTWROS) One of the most common property ownership types is 3. Tenants by the entirety (TBE) Married couples may instead opt to own property as tenants by the entirety, which is the same as JTWROS, except an owner can do nothing with their ownership portion without consent from their spouse, since the couple is legally considered one entity. If the marriage ends in divorce, the ownership structure automatically converts to tenancy in common. 4. Community property Nine states are community property states, with Alaska allowing residents to opt in. This real estate ownership type classifies any property obtained by a spouse during marriage as “community property” — that is, owned by both spouses, even if the property is only listed in the name of one spouse. This includes all real estate purchases made during the marriage.  The states that recognize community property include Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin. In Alaska, residents can opt into a community property agreement. The same community property laws apply to registered domestic partnerships in California, Nevada and Washington. 5. Owning trust In an owning trust, a trustee holds and manages a property on behalf of someone else,  typically a minor child or an adult with special needs. A living trust is created during the original owner’s lifetime. The owner, also referred to as the trustor or grantor, designates a beneficiary to receive the property while continuing to serve as trustee until their death. At that point, a successor trustee steps in to manage the property and ensure it passes to the beneficiary without going through probate. 6. Tenancy in common (TIC) With Unlike joint tenancy, TIC carries no survivorship rights. Each owner is free to sell, will or transfer their share to whomever they choose without input from the other owners. When an owner dies, their share moves through probate before passing to any named heirs. 7. Owning a partnership/LLC or co-ownership A property can be placed under a Owners can create the LLC by doing it themselves or use a third-party company like 8. Condominium ownership Condominium ownership means holding an individual deed to a unit within a multi-unit building, while sharing ownership of common areas with other residents. Those shared spaces are managed through a homeowners' association (HOA), which handles maintenance and upkeep.  Before purchasing, buyers should review the HOA’s financials, rules and fee structure, as these vary significantly from building to building. 9. Cooperative (co-op) ownership In a co-op, buyers purchase shares in a corporation that owns the building rather than receiving a deed to a specific unit. Those shares entitle them to a proprietary lease for their unit. This makes co-op ownership fundamentally different from condo ownership. Rather than holding an individual title, buyers own shares in the corporation that holds the deed.  Co-ops are also most common in New York City but exist in other metro areas. Purchasing one typically involves a board approval process, which can be lengthy and restrictive. Subletting is often limited or prohibited, and financing can be harder to secure since fewer lenders offer co-op loans. What type of ownership is right for you? When comparing the types of real estate ownership, a good starting point is to narrow down by who you’re buying with. From there, a few other factors are worth weighing: A real estate attorney can help you determine which structure fits your situation and state. Own a luxury second home with Pacaso Pacaso offers professionally managed LLC co-ownership of luxury second homes in Up to eight owners share one home, with scheduling handled through  Plus, Pacaso takes care of all of the management and maintenance, so owners show up to a home that’s ready.

When a vacation home catches your eye, one of the first questions to ask is also one of the most practical: how much should a second home cost? It’s a smart thing to ask before committing your feelings and money to any vacation property. The cost of buying a second home goes far beyond the listing price. Monthly mortgage payments, taxes, insurance, maintenance, and long-term operating expenses all factor into what you can realistically afford. That’s where our second home mortgage calculator comes in. This tool helps you estimate costs and weigh financing and ownership options, so you can decide with confidence. Second home calculator How does a second home mortgage calculator work? Our easy-to-use second home mortgage calculator takes the guesswork out of affordability by breaking the math into a few simple steps. The more accurate your inputs, the more helpful your results will be. Step 1: Enter your financial information Start by entering details that help calculate your monthly debt-to-income (DTI) ratio: Step 2: Review your debt-to-income ratio Next, you’ll see your current DTI ratio, calculated by dividing your total monthly debt by your gross monthly income. Lenders use DTI to assess risk—the lower your DTI, the more favorably you’re viewed. This step also shows your estimated cash on hand, or how much money you have left each month after recurring expenses. Step 3: Input second home loan details To estimate how much you should spend on a second home, you’ll enter: Step 4: Review your results Based on your inputs, the second home mortgage calculator helps determine the amount you would like to dedicate to a second home. You can also explore Pacaso second homes within your budget by selecting Now that you’ve run the numbers, let’s look at the bigger picture of making second home ownership work for you. What goes into the cost of buying a second home? The purchase price of a second home is just the starting point. Here’s a closer look at additional expenses to consider.  Key costs of buying a second home include: Understanding the full cost of buying a second home, including ongoing expenses, helps ensure your investment enhances your lifestyle and supports your long-term financial goals. What are five factors to consider when buying a second home? Just because a lender approves you for a certain loan amount at a certain These costs can have a meaningful effect on your overall financial picture, underscoring the importance of evaluating the bottom line beyond lender approval alone. 1. Know your financing options Knowing how you plan on 2. Revisit your current financial status To comfortably afford a second home, your debt-to-income ratio should ideally stay below 45%. Strong credit, substantial cash reserves, or a larger down payment may provide additional flexibility. Credit scores below 640 may make approval more difficult. 3. Understand second home mortgage requirements Beyond interest rates and down payments, lenders evaluate your full financial picture before approving a second home mortgage. Most require a credit score of at least 640, a DTI at or below 43–45% and two to six months of cash reserves on top of the down payment. 4. Know your options for second home ownership Getting a second home mortgage may be more difficult if your goal is to become the sole owner, but that's not your only option.  Pursuing You'll simply share ownership with up to seven other owners as part of a 5. Learn how to increase your borrowing power After evaluating your finances, you may find that you don’t meet the requirements for purchasing a second home at the moment. The good news is that you have the power to increase your appeal to lenders with just a little time and strategy. These strategies along with a second home mortgage calculator can put you in a stronger position to get an affordable loan down the road. What are the key differences between primary residence and second home loans? When you’re considering buying a second home, it’s important to understand how financing differs from your first home. While the loan process might feel familiar, second home mortgages come with slightly stricter terms. From down payments to interest rates, here’s how the two compare side by side: *Note that credit scores and interest rates are subject to the lender’s discretion. How can co-ownership make your investment go further? For many buyers, the cost of buying a second home feels most daunting when taking on the full financial and operational responsibility alone. Co-ownership offers an alternative—one that makes second-home ownership more attainable without sacrificing quality, location, or experience. Through co-ownership, multiple buyers share an ownership interest in a home using structures such as tenancy in common, joint ownership, or an LLC. When thoughtfully structured and professionally managed, co-ownership can unlock access to high-quality homes while simplifying the ownership experience. By dividing both upfront and ongoing costs, co-owners can: Enjoy structured usage without the burden of year-round upkeep What do Pacaso co-ownership costs entail? Pacaso builds on the benefits of co-ownership by offering a fully managed, transparent approach to owning a luxury second home. Buyers can purchase between 1/8 and 1/2 ownership of a professionally designed home, with costs clearly structured so there are no surprises. Pacaso pricing is organized into three main components: Share price The share price reflects the cost to purchase 1/8 ownership of the home. If you choose to buy additional shares, the price scales accordingly. The share price includes: Monthly home operating costs While a second home mortgage calculator can help determine affordability, non-mortgage related expenses can often catch buyers off guard. With Pacaso, these ongoing costs are budgeted annually and divided into predictable monthly payments, shared pro rata based on the number of shares owned. These costs include: Turnover services To keep the home consistently stay-ready, a turnover fee is charged after each stay. This covers professional cleaning, restocking essentials, inventory checks, and light inspections—so every owner arrives at a well-prepared home. Find your path to second home ownership with Pacaso Understanding the full cost of buying a second home—and how different ownership models impact that cost—puts you in control of your decision. A second home mortgage calculator can help you translate those costs into real monthly numbers, giving you a clearer picture of what you can comfortably afford before you commit. Whether you pursue traditional ownership or explore co-ownership, clarity around expenses helps ensure your second home supports both your lifestyle and long-term financial goals. When you’re ready to explore a smarter, more flexible way to own a second home, Pacaso is here to help.