19 Jul Pros and Cons Of Owning 2 Homes Posted at 06:24h in Home by admin 0 Comments 0 Likes Share As with any investment, there are always pros and cons. That is also very true when it applies to real estate. Here are a few things to consider: PROS: It is a good first step in building your investment portfolio. Your second home may be in your favorite vacation spot and could produce income when you are not enjoying it. You have a second home that is used by other family members, such as college-age students or aging parents. If you the second home is a rental property, someone else is paying down the loan while the home value can appreciate. You can take your time and move-in when you want, if you own another home. There are additional tax advantages to owning real estate that you do not live in. Talk to your CPA. CONS: You will have to qualify to hold two mortgages if you don’t pay cash. You will have more than one property to take care of for maintenance and up keep. Naturally, you will have higher insurance premiums. Your insurer may not cover a vacant home. Real-estate is not a liquid investment. If you need the equity to cover an expense, it could take some time to sell the home. You may have to rent it out for a period of time and deal with tenants.