What should I consider before purchasing a second home or investment property? Buying a vacation home gives you a place to relax and enjoy yourself. Buying an investment property can allow you to build your personal net worth over time. However, there are other things to consider when purchasing a second home or investment property: Financial responsibilities: Second homes and investment properties can have additional expenses, such as homeowners association dues, insurance, and maintenance costs. consider your monthly cash flow to ensure you’re able to handle additional property ownership. How much I can borrow? A pre-approval tells Realtors and sellers that you’ve been pre-approved for a specific amount based on a preliminary review of your credit information.