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Updated almost 4 years ago,
1031 Investment vs. 2nd/vacation home
I sold a property I owned for 4 years, during the last 2 years it was used as a vacation rental. I am using a 1031 to acquire a new property that will be used primarily as a vacation rental. For purposes of the new mortgage for this property am I required to obtain a investment property loan (higher interest rate) or can I claim it as a 2nd home and get the lower rate. I am not clear how Revenue Procedure how or if 2008-16 Provides Safe Harbor Guidance applies in my situation.