It's called "transferring the costs." Owning a second home, with its accompanying second mortgage, often ends up far too costly for many families. But there is an option that many people have discovered: Using the second home as rental property.

A second home that's strategically located in a desirable resort area can often pay for itself with money left over. Many states govern how many weeks you can live in your rental property, but you can always visit your home for "repairs" and "upkeep."

As with any second home purchase, the trick lies in actually buying the property. Lenders are picky about the finances on rental homes. They'll want documentation that shows that you really can rent it (a real estate brokerage group can help in this area). Most will not, however, agree to factor in all of a rental unit's estimated income into its calculations. Typically, they'll only consider up to 80 percent of a rental's yearly income, even if it has a strong historical track record.

If you buy with an eye toward renting, you should carefully consider the location. The trick is to make sure you buy a home that other people would want for one or two-week stays or as a weekend retreat.

While the turnover ratio for second homes is higher than people's primary residences, there's a difference in what people look for in second homes. Often, people don't want the biggest and the best. They want location and basic amenities that are big enough to accommodate their needs for short stays.

When you sell, you'll most likely find more buyers for moderately priced housing than for the most or least expensive homes.

Condominiums are particularly vulnerable to higher purchase prices, while the less expensive ones sell quickly. That's because people who buy condos typically expect to stay for only short periods at a time. A survey by the National Resort Development Association showed that nearly 62 percent of the buyers surveyed sought cabins or single family homes; nearly all of them preferred two bedrooms.

When you set your sale or rental price, know the territory. Competition is usually fierce in vacation areas. Install small amenities that make the rental more attractive (including microwaves, color televisions, air conditioning) and consider advertising in local specialty publications.