10 Best States To Invest in a Second Home
If you've already dipped your toe into the world of real estate with the purchase of your home, you may be looking to add to your portfolio with a second home as an investment property. However, the opportunities to make this investment profitable are not the same everywhere, as some states offer more affordable homes than others.
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To determine the best states to invest in a second home, Deluxe Holiday Homes evaluated states based on average house sale price, 30-year mortgage rates, average down payment percentage and disposable income. For the purposes of this study, lower income-to-mortgage ratio percentages indicated better affordability and greater viability for second home investment.
Here's a look at the best states to buy a second home as an investment.
Average house sale price: $219,861
Estimated mortgage payment: $1,633
Monthly disposable income: $1,996
% of disposable income spent on mortgage: 81.8%
Average house sale price: $259,430
Estimated mortgage payment: $1,819
Monthly disposable income: $2,144
% of disposable income spent on mortgage: 84.9%
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Average house sale price: $236,678
Estimated mortgage payment: $1,699
Monthly disposable income: $1,957
% of disposable income spent on mortgage: 86.8%
Average house sale price: $209,333
Estimated mortgage payment: $1,530
Monthly disposable income: $1,712
% of disposable income spent on mortgage: 89.4%
Average house sale price: $158,255
Estimated mortgage payment: $1,315
Monthly disposable income: $1,446
% of disposable income spent on mortgage: 91%
Average house sale price: $217,707
Estimated mortgage payment: $1,610
Monthly disposable income: $1,757
% of disposable income spent on mortgage: 91.7%
Average house sale price: $257,276
Estimated mortgage payment: $1,802
Monthly disposable income: $1,945
% of disposable income spent on mortgage: 92.63%
Average house sale price: $238,797
Estimated mortgage payment: $1,728
Monthly disposable income: $1,853
% of disposable income spent on mortgage: 93.3%
Average house sale price: $200,266
Estimated mortgage payment: $1,520
Monthly disposable income: $1,624
% of disposable income spent on mortgage: 93.6%
Average house sale price: $201,708
Estimated mortgage payment: $1,512
Monthly disposable income: $1,542
% of disposable income spent on mortgage: 98%
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