It keeps expanding!

This is making some broad assumptions... you and your family keep your expenses as low as possible while saving and investing as much as possible. 

I want to keep it as my primary since it's my first house, but I want to purchase another house to do the BRRRR Method.

Option 1:Pros:Simplicity: You avoid the potential complications of alerting the lender.Maintains Low-Interest Rate: Since your loan is at 3%, you continue benefiting from this favorable rate.Avoids Immediate Full Payment: You won’t be forced to come up with $45k immediately.Cons:Risk of Detection: If the lender identifies the payments coming from an LLC, they might call the loan due.Potential Consequences: If the lender enforces the due on sale clause, you might be forced to pay the remaining loan balance quickly.Option 2:Pros:Transparency: Being upfront might build trust with the lender.Possible Flexibility: Given your solid payment history, the lender might agree to the arrangement.Legal Compliance: You avoid any potential issues with violating the terms of your mortgage agreement.Cons:Risk of Loan Acceleration: The lender could still decide to call the loan due, forcing you to pay the remaining balance.Potential for Higher Payments: If forced to refinance, you might end up with a higher interest rate.Given the pros and cons of each option, but a cautious approach might be best:Consult a Real Estate Attorney: This can give you a clear understanding of your legal standing and potential risks.Evaluate the Importance of the 3% Rate: Weigh the benefits of keeping your low-interest rate against the risks of potentially having to pay off the loan early.Consider a Gradual Transition: This method allows you to continue benefiting from the low-interest rate while reducing the risk of triggering the due on sale clause.

Q1: Do I actually have to rent out the new property, or can I move into it myself and keep the tax deferment?

She wants to sell the 1/2 acre and the two wells that feed the community as her husband who passed away set it all up and maintained it,  I don't think she has been keeping up.

However, you can deduct or depreciate things needed to keep the property in rentable condition.  

My questions stems from wanting to take out a 2nd mortgage to build an ADU now while rates or high or keep waiting until rates drop.

As I continue to grow my portfolio I’d like to continue with the because their interest rates have been the best I’ve seen and they keep their loans in house.

So, besides now protecting the floor if this tenant wants to keep using it because these free standing bags can move around, they also are noisy and can cause vibration.