We have 40k in the bank and 100k equity in our current house (but we can't afford a larger payment on our current residence).

If you convert into your primary residence you still have to recapture all depreciation. 

Yes, it needs to be your primary residence and you can only have one primary residence (where you live the majority of the time, get your mail, pay taxes, sleep at night, etc.).

Sell & Buy a Duplex if your primary residence has significant appreciation, selling could free up a large down payment for a duplex.

Investment Info:Single-family residence wholesale investment.

Investment Info:Single-family residence fix & flip investment.

Quote from @Richa Wardhan: It's inside the city zoned RG-1, we would like it to be a vacation home and STR Hey, RichaIs the home already a vacation home and STR or is it a primary residence looking to convert over after potential ADU built?

My accountant's office called me the other day and let me know that I could amend my 2022 tax return and claim losses due to Hurricane Ian to a primary residence property and a investment property. 

Rent Price: $2,023With residents already moving in and retailers like Uchi, Van Leeuwen Ice Cream, The Salty Donut, Solidcore, and Lucchese opening, Plaza Midwood is about to be even more 🔥!

Rent Price: $2,023With residents already moving in and retailers like Uchi, Van Leeuwen Ice Cream, The Salty Donut, Solidcore, and Lucchese opening, Plaza Midwood is about to be even more 🔥!