renting a luxury home in Scottsdale

[Laurel G.]

We recently purchased a luxury home in a gated community in Scottsdale.  We are not planning on permanantly occupying  the property until retirement in a couple of years, but do want to use it occassionally when time allows. 

I am wondering if renting would be a good idea and also if there would be significant  tax benefits to structuring it this way for the initial few years.  Our financing would require us to state if the property is "investment" or "second home". 

The home comes fully furnished. Rentals would be high in the winter months- approx 25k/mo  and lower in the summer 8-9k/mo.  ( around 1% rule if rentals were as projected).  We have numerous rental properties,  but since  it is a high end home, and eventually our own home  we have reservations.

We have to make some decisions on this quickly to define financing and capture the rest of the peak rental season so quick feedback is appreciated.