It may not be as crazy as it sounds. According to the National Association of Realtors, one out of every three residential homes purchased in 2004 was a second home. Many of these are mountain cabins or beach cottages. That said, buying a vacation home is not something to do on a whim.

You should plan on doing some research before you go on vacation. Perhaps the single most important point to determine up front is why you are buying a vacation home. Are you trying to generate income by renting the property? Would you like to have a place to take your family every year that will likely appreciate in value? Would you prefer some flexibility in location and like to vacation at a different spot each year?

Once you