Gatlinburg, Tenn. - Do you ever check out the available real estate while on vacation? If you’ve considered turning that favorite getaway into your new second home, here’re some investment tips to consider:

Know what you can afford before you leave. Consider a mortgage pre-approval so you won’t be as inclined to make an impulse purchase.

Use a realtor who will maximize your time. You don’t want to spend your entire vacation looking at real estate. Find a realtor who knows the area and respects your time.

Talk to neighbors. One indicator of value is if the owners of nearby properties are locals. Property or an area that’s a worthy investment typically generates good word of mouth.

Investigate taxes and cost of living. Owning a home is much different financially than renting a home for a week’s vacation. Check out the area’s economics, including property taxes and cost of living indexes.

Decide how often you will use the property. Be realistic about whether it’s worth it. To some people, owning a vacation retreat is worth the cost because of the lifestyle and the potential to become a home they can retire to eventually.

Understand the profit potential. The property may beautiful, but its potential as an investment may be even more appealing. The more distinctive the real estate, the more likely it will appreciate. Don’t forget that interest on some qualified second home properties is tax deductible.