10 Investment Tips for Buying a Vacation Home

Want to invest in a vacation home? Inviting as the idea may be, there's a lot to think about before taking the plunge. See more real estate pictures.

You've discovered this great resort community. You've had a great time there. And you'd love to go back any time you want and serve as the arbiter of great vacations for others. And hey, if you make some money along the way, there's nothing wrong with that.

Congratulations. You've taken your first step toward buying a vacation rental.

But investment experts warn that you should never look at the idea primarily as an investment. If you need investment income, then put together a solid portfolio of blue chip stocks. A vacation house will never provide the returns of a diversified portfolio.

However, if you love a particular beach house and cherish the time you spend there, then you're on the right track. Yes, you can share this experience with others. But to make the purchase work, you have to be the house's No. 1 renter.

Let's look at 10 ways to make the most of your vacation home investment.