rules in California PML, residence?

[Lynn Harrison]

Hi,

I was on the forums a bit a couple years ago. My fiance and I were looking to invest in one REO and rent it out. A lot has changed since then, for one, my fiance died.

Before he died I found a PML through a friend who was interested in lending us money. However, I'm now interested in selling my place and buying a new one that I'd reside in. I understand this changes things and that there are regulations which discourage this. Are there ways around it? I will be looking at rank fixers, houses on post and pier foundations and raw land, none of which can be financed conventionally here. Many people in my area start with PM and fix things up and refinance through a conventional loan. Not sure how they do this...

[Bill Exeter]

I just wanted to weigh in here quickly. It was not initially clear whether you were talking about your primary residence or investment property and there was one comment about possibly structuring a 1031 Exchange.

I wanted to clarify for other readers that the 1031 Exchange would not qualify here since you are discussing your primary residence. I just wanted to make sure that future readers understood that.