The Pros and Cons of Owning an Out of State Second Home
Sep. 28. 2026
After my latest trip to my property in Durango, a few of you asked what it’s really like to own a home in another state. I get the appeal. A place to escape the Texas heat, spend time in the mountains, and maybe earn rental income when you’re not there? Sounds pretty great.
And it can be. But as an Austin Realtor and short-term rental owner, I’ve learned there’s a lot more to the decision than picking your favorite vacation spot.
In fact, if you are someone who loves variety-do NOT get a rental property in the same spot. Rent from the same family, or utilize those funds to explore other great areas because much like owning a home and living in it–owning a home in another state still comes with a list of headaches, responsibilities and maintenance is key to protecting your investment (but not cheap)!
PS-My time spent that weekend in Colorado was spent, tightening a few toilets, cleaning out the garage, planting new trees, watering and sodding grass and cleaning tracks to windows and glass doors.
First: Will you actually get there?
The mountains have always called my name. I chose Durango because I can drive from Austin or fly into town, get to the ski slopes in about an hour, and enjoy Colorado without taking on the price tag of some larger resort markets like Breck, Vail or Frisco (though I love them all, they do NOT fit my budget). I also wanted to avoid IH-70 like the plague. Tons of traffic, wrecks and shut down due to snow–I opted out for smaller and more affordable, which also means a little less accessible.
For me, I wanted a town large enough that had more than two restaurants and wasn’t so remote that you had to drive two hours from an airport once you landed…so Durango it was! The price I paid for a single family home in Durango was equivalent to small condos with exorbitant HOA fees outside of Denver, so it made sense (for me).
That works for my life. It may not work for yours.
I recently showed clients second homes, and while they LOVE the mountains-especially in TN and discussed a mountain house, they realized a lake house closer to Austin made more sense for their family. With kids in school and sports, free weekends disappear quickly. And flights for a family of five, and an out-of-state getaway becomes harder to use as frequently as having a home to hop in the car and pack up for a few nights.
Before you buy, ask yourself: How many times would we realistically go each year? Where is your free time spent now?
The pros of renting out your second home
My Durango home is both a getaway and a short-term rental. I love being able to use it, and renting it when I’m away helps with the cost of ownership.
- Rental income can offset expenses. That’s helpful, even if it doesn’t cover every bill.
- The home gets eyes on it regularly. Cleaners and guests can bring issues to your attention between visits.
- You get to share a place you love. I genuinely enjoy knowing other people are making memories there, too.
The cons of owning a second home (as a rental):
- Bookings aren’t guaranteed. You need to be able to cover the mortgage and other expenses during slow months.
- Things break, and they need attention quickly. A guest with no hot water can’t wait until your next trip.
- Your favorite dates might already be booked. Rental income is nice, but it can compete with your own plans. I cannot be as spontaneous as I would like.
- The costs add up. Cleaning, supplies, repairs, management, taxes, insurance, and travel all affect what you actually keep.
My rule of thumb: Don’t buy a second home that only makes sense if it books perfectly. Run the numbers with room for slow seasons and surprises.
Your local people are everything
I’ve had three cleaners at my Colorado property. I’ve also had a situation where one moved into the house and used the car I kept there. Yes, really. That story deserves its own post.
The lesson? If you own property from afar, the people caring for it are incredibly important. Spend time finding reliable cleaners, repair pros, neighbors, and backup contacts. In a smaller town, there may be fewer options and longer waits for things like appliance repair, hot tub service, or snow removal.
And if you plan to rent the home, check the short-term rental rules for the specific address before you buy. Get an insurance quote based on how you’ll use it, too.
Would I do it again?
Yes. I love my Colorado home. I love having a place in the mountains, and I’ve learned a ton from owning and managing it. I also see it as a stepping stone. Maybe I will 1031 this home into another rental property. Maybe I can long term rent it and utilize the furniture for another rental property down the line–having options and assets is nice and the market value has not decreased, even in the market downturn in the smaller Colorado towns due to supply and demand.
But the best second home isn’t necessarily in the place you love vacationing most. It’s the one that fits your schedule, your budget, and the amount of work you’re willing to take on.
Sometimes that’s a mountain home in another state. Sometimes it’s a lake house down the road. Both can be great decisions when you’re honest about how you’ll actually use them.
If you are trying to navigate a second home purchase, running an out of state air bnb or even how to find an expert agent in the area to help you get clearer on your options–I would be happy to chat or connect you.