I’m in the process of buying my 3rd property, which will be my primary residence for my family and I, it will be our permanent home for a lil while.

Each secondary room (4) is $850/mo and the primary room is $1,050/mo totaling in $4,450 in gross rents.

I just got a quote from my primary insurance company.

He would like to see a 7% return on his investment, interest paid monthly, and his money back when we eventually sell or cash out refi (~10 years out).Our current intentions are to live in the new building, rent out our primary, and short term rent the 3 units adjacent to our unit in the new building.

Agree they are both tenants and you can't keep it from the other tenant.If she gives notice you can send them both their own move out letter which would give him a chance to react.Agree the other one can stay if they want to and qualify.We always designate one tenant as the primary, in the lease, and make it clear that they are the decision maker. 

Hi James,We at Aslan do these types of mortgages, however there are some limitations for most lenders.For FHA, VA, and Conventional Energy Efficient Mortgages the property must be occupied as the borrower's primary residence, so they are not eligible for investment properties.

However, if you are purchasing the property subject to the loan, which is an FHA loan used for primary residency, I don't see a title company working with that unless the loan is paid off prior to any improvments made to the property.

My question is, could we take out the HELOC and then use that to move to a new primary residence and keep our current home as the investment property?

Would it be possible for me and him to buy a new primary residence for him to live in, while we rent the house he is currently in.

Yes, 1446 withholding is the primary issue.