All Forum Posts by: Wayne Jordan

Got it, thank you Joe and Wayne! The $200/month we'd make is not worth the risk to us. Follow-up question: does the same situation apply if we buy the next property as a 'second/vacation home'? Is there a certain amount of time we could live in it each year and rent out the rest? Or this a black and white situation--we plan on renting it out so it is an investment?

We're living rent free right now due to in-laws being very generous with their retirement home and allowing us to live in it. Our first house we're renting out for a nice income. We want to get a second rental home, and would like to put as little down as possible. To put the least amount down we would have to call the next house our Primary Residence to only put 5%-10% down, but don't intend to live there. I've been warned this is mortgage fraud and we would have to tell our lender that it is an investment property. Does anyone have any experience/advice on doing this? Another possibility would be to call the next house a second home, which requires less down then an investment property but I think this is the same situation--deceiving the lender.

Thanks,

Wayne