The following is an excerpt from Christine Karpinski's book, Profit from Your Vacation Home Dream: The Complete Guide to a Savvy Financial and Emotional Investment (Kaplan, 2005, ISBN: 1-4195-0691-9, $19.95).

When purchasing vacation homes, it's a given that you need to know a lot about the area where you want to buy. Included in that is knowing about strict governing rules, regulations, and laws that apply exclusively to vacation rental homes. For example, many times, homes in resort communities are difficult to insure properly and some local laws even restrict an owner's ability to rent. You need to know about these!

The best way to overcome any obstacles is to find an excellent real estate agent who's experienced in vacation homes in your targeted communities. Both in the initial search and when transacting a deal, you'll rely heavily on the knowledge of your agent. Keep these questions in mind:

• Can that person provide statistics and concrete information about the community?
• Does he or she fully understand the local laws and regulations?
• Is there a willingness to go the extra mile to make the closing go smoothly?

If you don't work with a qualified agent, you could lose out on benefiting from the expertise that person brings to the table. That's especially true if your vacation home is in a state that's unfamiliar to you. Do thorough research and make sure you pick one that fits your needs—plus find one you enjoying spending time with.

© Christine Karpinski 2005