Question: Please, how might one fairly determine the fair definition between a vacation home (2nd home) and an investment rental property? This question has come up as we look to refinance a property we own. The question of use may come up. The home is in the San Juan Islands and we are in the San Francisco Bay Area. The residence is on 7 acres and it is waterfront. It is available to rent by the week. In the summer there may be 10 weeks rented. In the winter, it is rare to rent. We have visited 4 times in the last year and a half. Is it a rental investment property, or is a vacation (2nd) home, please? Response: It is a rental/investment property and not a second home because you do not exclusively use it as a vacation home for your enjoyment or for the enjoyment of other family members and friends, for no additional income. You do rent the property out for income eventhough not for all seasons. When the property is rented, you are not also there enjoying the place. The renters have exclusive use of the premises when you rent the home out.
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