Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Please log in or sign up for a free account to continue.
Mortgage Brokers & Lenders
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 3 years ago on . Most recent reply

User Stats

61
Posts
11
Votes
Kevin Kim
11
Votes |
61
Posts

Primary Home convert to Investment property

Kevin Kim
Posted

Hello

I own primary home and am thinking buying new primary home soon. Once I close, new primary home, I will keep my current primary home as rental. (Location: East bay in CA)

Question here: To have some cash cushion for new closing (I have 20% downpayment but in case, I want to have some reserve), I am in middle of processing to have HELOC (as primary home HELOC, not investment HELOC) on my current primary home. Did anyone have similar situation that primary home is converted to investment property with HELOC opened? My plan is once I open HELOC, I will either use the money to buy another investment. And as long as I payback HELOC interest/balance monthly base, I don't need to report to Bank that my primary home is converted to Investment property? This is somewhat gray area that I am not sure what is the best approach here. Thank you in advance for your advice here.

Most Popular Reply

User Stats

7,753
Posts
9,631
Votes
Bill B.#3 1031 Exchanges Contributor
  • Investor
  • Las Vegas, NV
9,631
Votes |
7,753
Posts
Bill B.#3 1031 Exchanges Contributor
  • Investor
  • Las Vegas, NV
Replied

Make sure your current primary doesn’t have a bunch of tax free appreciation that you are changing to taxable by making it a rental. You don’t want to create a 30 or 40k tax bill hole you need to dig your way out of. 

Loading replies...