Hi. I am planning to buy a 5 bedroom single family house in Buffalo, NY for my daughter to live in. She will be there for another 5 years in a combined BA/masters program. She has 4 friends who want to live with her and will pay rent. The house is minutes from campus in a great neighborhood. It is cheaper than leaving on campus. I think it is a strong investment.
I will buy the house with cash using a HELOC on my primary residence. But then I am thinking of later getting a traditional mortgage to avoid the risk of the HELOC interest rate (currently 5.25%) rising.
My question is: Can I get a mortgage with owner-occupied (rather than investment property) rates? If so, does my daughter have to be listed on the deed? On the mortgage? And if I list my daughter on the deed and/or mortgage, does this affect my ability to consider this an investment property for tax purposes, e.g. deduct expenses?
Basically, I want to both have and eat my cake, if possible. Thanks for any guidance.
