TL;DR Is there a creative solution to getting a primary residence, after recently buying with my sister a duplex meant to be our primary residence?
My parents own a 4/2 SFH with my uncle and my parents are looking to get out of it. They had an idea to cash out refinance their half and then put me on the mortgage. So for me it would be NO money down and basically instant equity in half the house (which sounds SO awesome). My uncle is mostly only interested in this if they can get a lower rate with a primary resident. The thought is I live there, rent out the other 3 bedrooms and help manage it. In the future it could be re-zoned and we might be able to put up an 8 unit (my uncle is in construction, so he would help manage/plan that which is why he wants to hold onto it).
I would really LOVE to do this deal, but I’m about to close on my first rental property (a duplex) with my sister that we were planning on house hacking together in on one side while keeping current tenants in the other. So this duplex was already going to be considered to be a primary residence and we got a lower rate for it because of that.
My parents want out as soon as possible to use that money for another deal, and so they don’t want to wait a few months. It’s basically see if we can make this deal work now or it has to go on the market.
I know I could be added onto it and we keep it as a rental with a higher rate, but we want to see if there is another option here.
I also know I can’t claim 2 places as a “primary residence”, but could I claim my duplex as a rental for me while my sister lives there as a primary residence and still get the lower rate? Or do both of us have to live there now?
Any thoughts or other ideas that I could do would be GREATLY appreciated!
