(602) 790-9677
(602) 790-9677
(602) 790-9677



The Phoenix - Scottsdale market has long been a favorite for 2nd home and investment property buyers. The Valley of the Sun offers an outstanding climate, a rich arts and entertainment scene, and a vibrant outdoor lifestyle. The infrastructure is ever-growing and lets you get almost anywhere in the valley within an hour. Plus, housing is more affordable than in many cities of this size.

With many people now able to permanently work from home, this opens up entirely new possibilities when your choice of location is no longer tied to a commute. We are seeing an increase in people purchasing "co-primary residences" in resort destinations like Scottsdale, where they are actively working while enjoying the lifestyle that was previously reserved for retirees for part of the year.

Matthew Hoedt has undergone extensive training in the art and science of real estate investing. He can explain the differences in financing, taxation, and valuation versus a primary residence. He'll also help you compare the costs, rentability and income potential of various properties.

His network includes property managers, lenders, and service providers that specialize in the 2nd home and investment property market. He’s been a bank VP, mortgage consultant, and licensed financial advisor, and is an investor himself. You’ll have a partner who is highly knowledgeable in finance and investing as well as real estate.


What is a Second Home?

A second home is a property that you purchase to live in yourself, even if it’s only for part of the year. To be considered a second home, it must be some distance from your primary residence, although this requirement varies by lender. Most will insist that it's at least 50 miles from your first home. For tax purposes, a home that you live in at least part of the year and is rented out less than 180 days can be considered a second home.

Lenders generally offer more lenient terms and lower qualification hurdles for second homes than they do for investment properties. Down payments can be as low as 10%. Interest rates will be higher than for a primary residence, but lower than for an investment property.


What is an Investment Property?

An investment property is purchased with the intention of generating income. You can live in an investment property, but most people choose to rent them out either as someone else’s primary residence or as a vacation rental.

An investment property could be a rental, one you intend to flip, or even a commercial property. When it comes to taxes, any property that is not occupied by the owner for most of the year, is rented out for more than 180 days per year, and/or and is solely used for income generation is typically considered an investment property.

A property is considered residential if it includes 1-4 living units, and can be financed using residential loans. 5 units or more is considered commercial, and requires a different form of financing.

Mortgage rates are usually higher for an investment property than a second home, perhaps 0.50% to 1.00% more, due to the greater perceived risk. People are more likely to ditch a business venture that’s become a financial hardship than a vacation home. Down payments of 20-25% are typical.



Want to find out more? Contact us today to set up a free, no-obligation consultation, and let us go to work for you!



Matthew Hoedt holds the Resort & Second Home Specialist (RSPS) designation as well as the now-retired Certified Investor Agent Specialist (CIAS) designation, and has spent the last 15 years living and loving the unbeatable resort lifestyle of Metro Phoenix.


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