Lately, my wife and I have been discussing the idea of continuing to rent a primary home here close to town but purchasing a vacation cabin a few hours from here. We can rent pretty much any house we want here in our area for around $1,000 a month, and while real estate in the immediate area is not dropping as much as in other communities, the “vacation cabin” areas are dropping by significant amounts. That is not to say that people are not buying them – the market for these type of houses is always good (who wouldn’t want to vacation in northern New Mexico or southern Colorado) – it’s just that not too many people are looking to pick up second houses right now. Which could mean that we could get a fantastic little cabin on acres of land for a steal. Hmmm…
photo credit: Gadget_Guru
Because of how we make 80% of our income (freelance work) and the way the economy is right now, getting a mortgage for a primary residence is more difficult than usual. I wrote about our adventures in trying to find a mortgage in this market using only 1099 income, and it has only gotten tighter out there since then. But getting a much smaller mortgage would be a piece of cake for us, so we have been contemplating picking up a vacation cabin that anyone in our families could use anytime they wanted to, we could rent out to the public if absolutely necessary (not that we want that headache at all, but if times got tough…), and is in the middle of the forest – one of our favorite places to spend time. We seem to find ourselves wandering around the National Forest each and every weekend anyway, and being able to check out of town for a few weekends a month and head to our own cabin sounds incredibly relaxing. And because of what I do for a living, I could go up there anytime to work on it, and we could even spend the entire summer there as my wife is a teacher. It is an interesting thought and one that keeps creeping into our everyday conversation.
What do you guys think?