National surveys highlighting the best places to live continue to include several college towns, often touting their slower pace and the athletic facilities and educational programs offered by the school. College towns also remind people in a variety of age groups of the places where they grew up (or received their education) and where they ultimately would like to return.

For example, two couples my wife and I have known for years recently purchased homes near Western Washington University in Bellingham, Wash. When I asked if the homes were going to be college rental investments, I was told that both couples plan to make the homes their second residences.

One couple who wanted to be closer to two grown daughters had signed up to do volunteer work in the Bellingham area. The other couple planned to use the home as a jumping off point for boating in the San Juan Islands and Queen Charlotte Strait.

If you want to move down the road, especially to a college town, see what’s possible today. Some owners need to sell and could be open to different types of financing.

In addition, there are plenty of potential renters (other than “Animal House” undergraduates) associated with a college or university who would be happy to rent a comfortable place close to campus. The number of visiting professors to college campuses always is underestimated, as are the number of staffers (secretaries, security personnel, catering staff, librarians, etc.) who often are terrific rental-lease prospects.

Notes sent to human resource representatives have worked wonders in landing mature renters, as have inquiries posted in faculty lounges and on-campus faculty living areas. Graduate students (some married) also form a significant renter pool. Sometimes, professors seek alternative housing for highly coveted students.

A purchase at today’s prices could save you money, return you to your roots and perhaps achieve your goal of returning to campus for more than a football weekend. It also could provide you with a huge pool of renters until you get there.

“I know the real way to retire in Mexico,” said Jeffrey Hill, a part-time Fort Lauderdale resident who uses HomeAway.com to promote his rentals. “Start before you are ready.”

Hill, a former Seattle resident, has four vacation rental homes in Puerto Vallarta and one in Florida. (“Does that tell you which is more profitable?”) He spends most of his time south of the border and part of his year in Fort Lauderdale. 

“Take your investment money and buy a second home today where you want to retire or think you want to retire. Create a good rental property, and rent it for the next five, 10 or 15 years. The sooner you start, the better. I would not be where I am today had I not bought my first home in Mexico 11 years ago. In fact, I wish I had bought 30 years ago.”

Hill and others bristle at the thought of Mexico being stigmatized by media coverage of violence.

“There have been no incidences of drug violence in our little beach community of 15,000,” said Glen Triplett of his 5,000-square foot villa at Rincon de Guayabitos, 45 miles north of Puerto Vallarta. “The local people are very friendly and it is a great place to live.”

In reality, most of Mexico is unchanged and laid-back, warm and welcoming to foreigners. Owners like Hill say the country has received a bum rap, as reporters have raced to make the world believe that the entire country is dangerous. Many of the areas continue to appreciate, unlike most of the markets in the U.S.

Hill has been going to Puerto Vallarta for more than 30 years and has owned property there for more than 11. He estimates 10 percent of his rental clients ask about the drug violence. A far greater percentage asked him how to get started with a retirement home in Mexico.

“Buy now,” Hill said. “So many people leave their money sitting in some investment until the day they finally make the move to retire. They sell their home when they finally retire and start looking for their new place to go. Well, it's very possible that as the years go by, the prices will continue to go up.”

We used to own a very large home in an old, in-city neighborhood that most of our friends thought looked great at Christmas.

I had never really thought about it very much until a successful bid at the local babysitting co-op auction brought us a one-hour visit from Santa.

As the neighborhood kids were coaxed into family-portrait poses with their parents and Santa near the Christmas tree, I sat back and thought how appealing the house actually was.

If there's one time of year the house feels presentable, it's during the holidays. And it's not just the yuletide decorations. The kids seem to help more, perhaps knowing the consequences of being naughty rather than nice; bulky furniture and toys often are stowed in an attempt to save space, and pleasant baking smells come consistently from the kitchen.

The big day with Santa and the neighbors turned in to an offer to rent. Some of our friends knew we were headed to grandma’s for the holidays and asked if their relatives could rent our home while we were away. It worked out well – and we would do it again.

The idea that nobody rents in-city homes during the holidays has fallen under the conventional wisdom bracket. However, common sense can also be a moving target: Families travel at Christmas and would prefer a home to a hotel room – in our case, two or three rooms.

Everyone wants to feel warm and welcome – no matter who they are. If your home looks great at Christmas, offer to rent it out. The online reviews will be all the marketing you need, and you can stow any can’t-break ornaments before you go.

Tom Kelly’s book “Cashing In on a Second Home in Central America: How to Buy, Rent and Profit in the World’s Bargain Zone” was written with Mitch Creekmore, senior vice president of Houston-based Stewart International and Jeff Hornberger, the National Association of Realtors’ international market development manager.

Approximately 70 percent of America’s elderly own their own homes and 80 percent owe nothing, according to HUD statistics.

If you are property rich and cash poor, a reverse mortgage could put you in that vacation condo sooner than you think.

Reverse mortgages are aimed at individuals 62 years or older who own their homes – either debt-free or close to it – and who have a need for additional cash. The homeowner cannot be displaced and forced to sell the home to pay off the reverse mortgage, even if the principal balance grows to exceed the value of the property.

The lender never takes title to your property. If the value of your house exceeds what is owed at the time of your death, the rest goes to your estate.

HUD’s Home Equity Conversion Mortgage (HECM) is the most popular reverse option available today. All HECM loans have been guaranteed by the Federal Housing Administration.

The reverse mortgage can be used to acquire a second home. For example:

• Bob Crawford, 72, and his wife, Jane, 71, have a $235,000 home in St. Louis.
• They take out a lump-sum reverse mortgage on their primary residence totaling $106,000.
• They buy a vacation condo for $125,000 in New Mexico with the money ($106,000 plus $19,000 from Bob’s retirement).

After a decade of no loan payments, they choose to downsize. They sell their primary residence, pay off the underlying debt and move to the New Mexico condo. Using an average appreciation rate of 4 percent on the primary residence and a 7 percent interest rate on the loan, the balance on the loan would have increased to $253,198 and the value of the home increased to $347,857. If the home netted that amount upon sale, Jane and Bob Crawford would put $95,659 in their pocket.

Remember they have made no mortgage payments – on either home – for the past 10 years.

For a reverse mortgage lender in your area contact the National Reverse Mortgage Lenders Association

For those cash-strapped second home buyers who do not want to be forced into a tight time frame, renting or leasing with an option to buy can bridge the gap to purchase. If you really want the place, give it a shot. You’ll never know if you don’t ask.

Sometimes, a rental or leased home can turn into the permanent home for the renters, which is why a lease with option to buy is sometimes preferable. And, a lease option can buy time to research the area while getting a portion of the monthly rent credited toward the down payment.

Many owners make a commitment to purchase another house before selling their old one. If the first house does not sell, they are faced with making payments on both houses. To avoid this debt load, the owner agrees to lease out the first house for 12 or 18 months.

The lease agreement includes an option allowing the tenant to buy the property within the lease period. Here's how a typical lease-option works:



• The owner and tenant agree on a purchase price.



• The owner charges the tenant a nonrefundable fee for the option. 



• The monthly rent is typically greater than market rates because no down payment has been made, but a portion of it applies toward the down payment.

Owners should read their mortgage agreements carefully before considering a lease-option. Some lenders may activate a due-on-sale clause if the borrower enters into a lease option with another party.

Lease-option forms are available at some stationery stores that carry professional forms. If you are concerned about the language of the agreement, consult an attorney or escrow officer.