Purchase a vacation cabin is an extension of the American dream. Owning a second home, or owning a vacation home, that you can visit whenever you need to relax can be an amazing privilege. Before you purchase a vacation home, there are a few things you should consider.

#1: What You Can Afford

When it comes to purchasing a vacation home, you don't' want to increase your debt. If you want to purchase a vacation home, you should do so if you can purchase the home without taking out another mortgage. You should only finance the purchase of a vacation home if you can do so without overextending your budget. The mortgage should be something you can easily afford to pay. You don't want to be stressing about paying your bills every month because you are carrying too high a mortgage on your vacation home, so make sure you know what you can afford.

#2: Don't Count on Rental Income

Many people assume that they will be able to count on rental income if they purchase a second home. however, you should only purchase a second home if you can afford to pay the mortgage without bringing in rental income. You never know when market changes can impact the rental market. Managing a rental or working with a rental agency to rent out the home for short-term vacation rentals can take more management responsibility than you may anticipate.

#3: Know What Type of Vacation You Enjoy

When you purchase a vacation home, you are purchasing a home where you will spend a lot of your free time. You are also purchasing a home where you may spend a lot of time when you retire. Keeping those considerations in mind, you need to purchase a home in a location you enjoy visiting a lot. You want to purchase a vacation cabin in an area you don't get tired of, where you enjoy the local community as much as the vacation cabin.

#4: Always Work with a Local Agent

When it comes to purchasing your vacation property, always find a local agent to work with. You want to work with an agent who really knows the area. A local agent will be able to find you a home that is both relaxing and allows you to easily access things you need, such as the grocery store. A local agent may know where a home that will sit unoccupied for large parts of the year will be the safest.

When it comes to cabins for purchase, make sure you can afford to easily pay the mortgage on the cabin without stressing your budget or depending on rental income. Choose a location where you love the local area, and work with a local agent to find the best vacation home set-up.