Best strategy using residential property to set up rental

[Rhonda Osborne]

We currently live in a small double wide on several acres of land. We are planning on building a home, continue living in the double wide until our new home is built, then moving the double wide to another area of our property as a rental.

We had considered splitting a couple of acres from our property and set up the double wide as a rental. We could have a clear deed to this property. This could be used to borrow and cash out for another rental. Tax wise from listening to the podcast I'm not sure this is the best idea. 

There's enough equity in our residential property now to build the new home and cover the cost of the move and additional work needed to move the double wide.

*For the best tax exemptions

1. Should we finance both the new home and double wide on one deed; so the rental is part our primary residents? That would be like house hacking in reverse. This  would save money on 2 closing cost and fees associated with surveying etc.

2. Should we deed a couple of acres plus the mobile home and finance just the rental related expenses against the second deed?

3. If I advertise the double wide rental before we move it, will we be able to count more of the expenses as tax deductions as though it is in service?

The double wide will have several expenses:

1. Moving, set up and permanent foundation cost

2.Grading, New septic system, water hook up fees, new electrical set up, etc.

3. Building permits

4. The inside we have completely remodeled over the years; but as a rental we want to start with a new roof, heat pump, and new porches and decks.

Please advise.

Thanks

Newbies

Ricky & Rhonda Osborne