Buying & Selling Real Estate
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 6 years ago,
Primary Residence to Investment Property
Hey guys, my wife and I are purchasing our first home. It is currently tenant occupied and we plan to let the tenants stay for 3-6 months after we close. We are also considering letting the tenants stay a full year because our current living situation is great and cheaper than what our monthly mortgage would be.
Since we are receiving a residential loan from a bank, how would it work if we let the tenants stay a full year? I know the IRS requires you to stay in the home for the majority of a year to consider it your primary residence. Do we have to move into the home for tax purposes or could we continue to rent & hold this home as our primary? Would I need to refinance if we decided not to move into the home but keep renting it?
Any advice on this would be rock solid!