Using second/vacation home for investment property

[Khai Tran]

I plan to buy a duplex out-of-state for my first investment. A mortgage consultant from a big bank told me that since this is my first out-of-state property, I can use second/vacation home loan for lower downpayment and interest.

I still worry that if I use the loan, can I still turn the property into an investment and hand over it to a property management company to manage it. 

Is it legal and has anyone tried to do that?