So I’m looking to leverage my current homes equity to use as a down payment for my next primary residence.

I’ve only considered it for our primary residence.

@David Avetisyan If you sell your home for $510K and provide a $10K seller credit, your taxable gain is based on the net sale price of $500K ($510K - $10K credit), as seller credits reduce the gross selling price for tax purposes.Tax Impact in CaliforniaCapital Gains Calculation: Your gain is the net sale price minus your adjusted cost basis (purchase price + closing costs + capital improvements).Primary Residence Exclusion: If you’ve lived in and owned the home for at least 2 of the last 5 years, you may exclude up to $250K (single) or $500K (married) under IRC Section 121.California Tax: Capital gains are taxed as ordinary income at rates up to 13.3%.The $10K seller credit lowers your taxable gain.

If so, she qualifies for a section 121 exclusion, which means she is selling her primary residence and won't owe capital gains tax on up to 250k in growth over her basis (It wouldn't be an issue if it sells for 250k). 

I moved all that debt to my primary residence home HELOC currently at 8.5% interest. 

I have a W-2 job primary and my business partner has another business.

Then set aside the equity to invest outside of a primary home.

Our goal has always been to use this condo as a primary residence for 3-4 years and then rent it out afterwards (we're planning to move out of state in 2026-2027).

I have lenders that I can point you to that would likely be able to give you a better product that will pay off that primary residence loan, or restructure it into one that doesn't take so much long term value out of your equity.

Have had an Airbnb out of our primary residence basement for 2.5 years and bought a duplex in November after taking out a HELOC on our primary to use for the down payment and some renovations.