Leverage and invest at 40x $100 000 properties ($20k down + $5k closing cost, 30 yeas fix rate loan) with a return of 10% where you have better asset protection (my keeping lower equity and higher bank position), you are hedge against inflation (agree with me, in 30 years $1 000 000 purchasing power will be less compare than $1 000 000 today) Here is how looks mathematically:1. 10% on $1 000 000 (10x $100 000) = $100 000 / annually - No interest tax deduction- No loan paydown benefit2. 10% on 1 000 000 (40x $100 000) = $400 000 / annually - debt service + full tax benefits+ loan pay down+ hedge against inflation for 30 years+ better asset protection (by maintaining lower equity  position)   + (not guaranteed of course) if appreciation happens, it happens on the all full asset amount, example:If appreciate 10%:In case "1" you will have 10% on $1 000 000 = $1 100 000In case "2" you will have 10% on all 40x properties (40x $100 000 = 4 000 000) = $1 400 000As far as cash flow, as long you buy "right" CAP 8% and higher you will have stronger cash flow on leveraged asset + all additional benefits.Great explanation.

They must be claiming it to be a primary.

Quote from @Jason Ghent: Hi everyone,For the FHA, what about the case where you live in the primary residence but just rent out the remaining rooms?

In 2016, we returned to KC and purchased our primary home in Liberty using a Doctor’s loan.In 2020, we developed a strong interest in real estate investing.

It's going to be more about your confidence in the market that you can afford than anything else, so the primary thing is to look up a few areas you might be able to afford and then look for someone local that can hop on a call to give you an idea about what investing there is like. 

@Brent Hindman Are you looking to upgrade your primary residence or what would you be looking to purchase as the next home?

Should I refinance, I know I cannot do  HELOC because it is not my primary residence. 

If you get dealt that character card, your primary challenge is that you need to replace a lot of income to get out of the rat race.

But you could use the 1031 to buy the rental portion of the building and move in to another unit as your primary.

They know who their primary audience is, people who are broke, newly interested in real estate (maybe from tiktok), and want to get rich off of possible income without putting in the effort to make a bunch of money.