How to Purchase a Second Home to Rent

Video Transcript

"This is financial adviser Patrick Munro talking about one of my favorite topics, is investment real estate, how to purchase a second home to rent. Purchasing a second home to rent is an excellent financial goal for an individual to have. And one of the most unique ways of doing it is to be in a principle residence and rent your current house out and then move in to a better home. Therefore you've sort of leapfrogged over. This way you'll have the second home to rent which gives you a form of first principle residence. Many times you can construct a new second home when it's ready you can move out of that one and have a renter move in behind you using that as primary residence. You'll now have two homes and one is being serviced by the tenant who pays you rent on a monthly basis and you in turn give those dollars to the bank as a mortgage debt service. It's an excellent opportunity to build wealth and you can do it again and again and again, subject to mortgage guide lines. It's a little more difficult in today's recessionary economy with the banks being what they are, to do this. But it is an excellent opportunity to build wealth. This is Patrick Munro talking about how to purchase a second home to rent."