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Updated almost 9 years ago on . Most recent reply
List investment property as primary residence?
Hi BP community -
I'm just starting my journey in real estate and seeking to buy my first property in California's Central Valley, namely Merced. I work in San Francisco and live on the peninsula where real estate valuations are astronomically high, hence my interest in looking elsewhere. Merced is about a two hour drive from my home. I plan to buy and hold and rent the property.
My uncle is a loan manager and has offered to do the transaction for me without some of the associated costs. He says I can list it as my primary residence for one year and I can claim I work remotely (which I often do) to avoid higher rates/down payment associated with purchasing a property as an investment property, not to mention the tax benefits.
Do folks in the BP community have any advice about this? Is this off-the-books kind of move common practice? I'm worried about the consequences of listing a rental property as my primary residence and wonder if I'm getting bad advice from my uncle.
Thanks in advance,
Alex
Most Popular Reply
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My loan offer was telling me to do the same, but you're taking a pretty big chance. It's mortgage fraud and a federal offense. What would happen if you had a bad tenant that reported you? Your loan can get pulled or even worse.
I opted not to do it since I can pay the 25% and .25 points more for an investment loan. At least I don't always have to worry.