Hi @Sharad BagriIt’s great to see you considering liability coverage right at the outset of your partnership investment.. that’s a proactive move many new investors overlook.

My goal is to rehab it first then move in as my primary residence.

If I choose the rental, then all income generated will be taxable income moving forward, because none will be off-set by the interest I could deduct.  

Quote from @Neeta Agrawal: For context, we gave the tenant a 60-day notice for non upkeep and no repair communication in 2023 and then extended it for 30 days upon his realtor's request, setting the move-out for May 31, 2023.

I would restate that the lease will remain in place until such time that a new tenant is selected and moves into the property.This approach will ensure your cash flow while acknowledging that 'stuff happens.' 

People come here, buy, move away and try to keep the house as a rental.

It has to be an addition.I would double check because maybe the workaround is reinforcing the garage and building above it.We lived in our studio ADU for two years before we moved into the main house.Best thing to do is talk to an experienced lender.

Let’s collaborate and share insights...sometimes a simple conversation can spark your next big move. 

if you're in St Pete frequently you'll need to turn some of those vacation trips into work trips - networking, building a team, and trying to find a distressed property.but the trick is then going to be moving quickly if either 1) a distressed property hits the MLS (unusual, but not unheard of) or 2) a distressed property comes to you another way (from your network, from a wholesaler.)how you will move quickly enough to lock it down and buy it, if you're in RI? 

However, you can make changes as long as all parties agree.If the tenant agrees to removing certain clauses, or starting with a new lease, then you can move forward.