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Updated almost 3 years ago on . Most recent reply
![Adri Jusczak's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/1692911/1621514827-avatar-adrij.jpg?twic=v1/output=image/crop=3024x3024@0x167/cover=128x128&v=2)
Duel Residency to Avoid STR Regulations
Hi All,
I found a great Airbnb opportunity. I just moved to CA for work and this would be out of state but where my company's office is. In the city I plan on doing STR, if I don't occupy the property, they have a ton of regulations. Accessibility requirements, certified arch. plans, etc. If I owner occupy, all of these restrictions go away. It's a duplex, I would be able to live in the downstairs unit and STR the top unit. If I did that, I would be able to have minimal money invested and live "for free" and cash flow roughly $3200 monthly.
The question is, how is this feasible? I own my house in CA, my partner needs to be in CA. I would save a ton in income taxes by not being a resident of CA. Has anyone done this sort of thing for a deal? It would bring me closer to my goal of retirement a lot faster. Any tips would be greatly appreciated!
Most Popular Reply
![Tim Swierczek's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/618350/1621493924-avatar-timswierczek.jpg?twic=v1/output=image/cover=128x128&v=2)
Quote from @Adri Jusczak:
Quote from @Michael Baum:
I am not sure I get it @Adri Jusczak
The issue is that you plan to spend more time in CA than in MN. If you do this, you would be committing fraud. The type of fraud would depend on several factors. If your loan is for an investment property, the lender would have no issue, if it's a second home, you would not have a fraud issue unless you rent out the place and do not have it for personal use, this seems unlikely based on your post so you should be good with this financing. If you finance it as an owner-occupied home, which I believe could be your thinking based on your comment that "I would be able to have minimal money invested" This is fraud and is a federal crime. You also run the risk of fraud with both the state of MN and the state of CA. I would not recommend you do this unless you actually plan to live in MN for at least 6 months and 1 day, if this is not the case you should purchase it as an investment and do it legally correct.
- Tim Swierczek
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