A Modified House Hack

[Ash Lynn]

Hello BP!!

I am looking for my first buy and hold deal. I'm having some trouble finding a solid deal and am feeling a little overwhelmed. But that is ok because I know that I keep hustling things will pay off. In the meantime, I am strongly considering moving out of the 3 bedroom/ 2.5 town house that I own (pay mortgage) and moving in with my mom. If I move in with my mom, I could cashflow about $300-$400 per month from the property and the savings that I would have by splitting the bills with my mother. I do have a few questions, that are important to answer in order to make sure this strategy makes sense. 1) If I rent out my primary residence, is this still considered a "rental property," in regards to tax deductions/tax savings (ex: depreciation, income, repairs, etc)?

2) I would use the money I've saved for a down payment and repairs on property instead to renovate my house and make it rent ready. I have equity in my  house, so I can do a cash out refi to fund the down payment and repairs for property #2 when I find it. 

The house hacking strategy is a way for me to get into the real estate game, and start cash flowing asap. My goal has been to buy 1 rental property before the end of the year, I've been looking for about 6 months and haven't closed on one yet. I want to meet my deadline, however I don't want to rush and buy a bad deal. Financial freedom is my ultimate goal and I am I willing to move back in with mother If it makes financial sense!! Thanks for your feedback!