Hi ChandraYou said that you own another home ( your primary residence).

Some possibilities MAY be redirecting water away from the structures, or jacking the structures up and building a base underneath, but most likely the property is in a flood zone and these would not be effective solutions.  

I currently am eligible to take out a HELOC on my primary residence- Ive been approved for $70,000.

If one decides to reside in one of the units for 2 years prior to selling will the $500k exclusion take place and gains taxation would only be imposed on a selling price of $600k or higher?

I went to a mortgage broker who said that due to my also holding a mortgage on my primary residence his underwriter said the following: 1.

Acquired in 2011 as my primary residance for $117k.

If so, the market is tough for that as any fixer has investors looking for flips and home buyers looking for a primary residence.

Reason I ask is most conventional lenders will offer a 5% down option on a personal residence. you'll still pay monthly PMI but it's far cheaper then the FHA options.

Solution: follow the BP process and check, verify, check again.

I'm a Rhode Island resident, a first-time homebuyer, and am interested in purchasing my first investment property.