Due to the higher right of foreclosures, now could be the time to take advantage of the results of the subprime lending crash. Second home investment could be a good move if you are in a position to afford another home mortgage, and if you plan to use this second home as an investment property. Why? Because even after the foreclosures go through, former homeowners will need a place to live.

If you can rent out your newly-acquired investment property to someone who has a steady job (and whose main mistake was signing up for more home mortgage than he or she could pay for), you can reap the rewards of a good long term investment. Real estate investing offers interesting opportunities that you can take advantage of, and now may be a good time. However, as Inman News points out, you should also do careful research:

"The residential rental market in places
like Denver has been very strong because there have been so many
foreclosures," [foreclosure expert Tom] DiMercurio said. "Indianapolis also has been in a
foreclosure mess, and everybody is starting to understand how deep the
problems are in Detroit.

"But anybody who wants to buy a property in addition to their
primary residence really needs to go back to basics. The value of a
piece of real estate must be based on the net income it can produce. If
it’s sustainable with a modest — yet realistic — down payment, then
it becomes a viable candidate for investment."

If you approach it carefully, another home mortgage could result in a good second home investment.

Disclaimer: I am not an investment professional. I merely report interesting investment opportunities I run across. All investment, including real estate investing, carries risk. Do your own research and consult an investment professional before making major investment decisions.

Tags: home mortgage, personal finance, financial planning, finances,
financial goals, second home investment, investment property, real estate investing