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Updated 2 months ago, 09/18/2024

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10
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5
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Rick Im
5
Votes |
10
Posts

How soon can I convert a rental property to my primary residence?

Rick Im
Posted

I recently purchased a rental property and discovered it needs more extensive repairs than I originally anticipated. If I rent out my current primary residence, I could generate over $1K in positive cash flow, so I'm considering moving into the rental property and handling the repairs at a more manageable pace. I understand there's a one-year waiting period before converting a primary residence into a rental property, but does this same one-year rule apply when converting a rental property into a primary residence.

I have another question. When I purchased this property, I used my HELOC to cover the 25% down payment. From what I've found online, there appears to be a 6-month seasoning period before refinancing, but this may not apply to non-cashout refinances. After completing the repairs, I expect that 75-80% of the renewed property value will be close to my purchase price, and my goal is simply to recoup the down payment. Would this be considered a non-cash-out refinance?

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