Tom Kelly: Second home? How to determine what you really can afford 

Thinking about buying that cabin in the woods your family enjoyed over the weekend?There are two ways for determining how much cash you can afford to put toward a second residence solely for your personal use or part-time rental.The first is the asset method. Start by taking stock of your present wealth. Create a balance sheet of your assets and liabilities.

Don’t forget to include the equity in your primary residence, even though you may be dead-set against borrowing against the roof over your head. Homes are no longer cumbersome and difficult-to-liquefy assets, thanks to the integration of home equity lending with other financial opportunities.

Source: Tom Kelly: Second home? How to determine what you really can afford