Ultimately no one else can make this decision for you, and it sounds like it's you driving the decisions for both yourself and your sister. 

It would serve you well to discuss these definitions with appraisers and perhaps your local building authority before making a decision. 

Some states are easier than others; however, it is important to understand the process and laws of owning properties in another foreign state.

 Here's How to Make Sure It's Set Up for SuccessToo many real estate investors focus only on acquisition and forget about financial clarity.

Make money and someone else deals with the problems. 

You’re asking the right questions, and it’s great to see you thinking strategically.My Take on Your SituationSince you already own a rental and want to expand your portfolio, your main decision points are:1.How to pull equity to fund your next deal2.Whether to transfer your current rental into an LLC3.How to position yourself for long-term growthHere’s how I’d approach it:HELOC vs.

Granted, the real estate investing market was better in 2016 than it is now.Best of luck to you with whatever decision you make.

Make sure it's a property you truly believe in. 

Hey BiggerPockets Community! 👋 Excited to be part of such a great network of investors!
I’ve been working with real estate financials for a while, and I keep seeing one mistake that costs investors thousands: poor bo...

It might make the most sense to just sell your primary residence and use it as 40% to 50% down payment on your future home.