Our primary asset is a house we bought in 2021 for $975 (3% interest rate).

The primary reason is that my parents' risk tolerance is much lower than my own (they are retired and are on fixed income).

If the property appraises for $500,000, you would only be able to cash out $375,000.Would this still be true as a primary residence or would we be able to find something like 5-10% down on a 30 yr loan?

@Kristin SolbachIs your primary residence in TX? 

Second, I have a question about REPS status in a longer term sense.The primary benefit of REPS status, as I see it, is to take passive real estate losses, usually from depreciation and accelerated depreciation via cost-segregation, and use those losses to offset active income, reducing current or future AGI and tax burden.I’m clear about this benefit, but what I’m unclear on is the consequence in out years.For example, if I put $100K into a multifamily syndication, and the syndication does a cost seg, resulting in a $40K loss, I believe that a Real Estate Professional could claim that $40K loss against their other income and reduce their AGI accordingly.

Has anyone found success in turning your primary residence into a rental, buying a new primary with 3-5% down and repeating each year?

The last coupe of weeks 3 people told me their premium went down for their primary.

While I love the idea of eventually owning a paid-off primary residence, I’m debating whether it’s smarter to sell our current house and use the equity as a down payment on the new home or to keep it as a rental.

My primary residence is debt free as is my rental property-- the thought is the rental will supplement the retirement income and I'm not chasing ROI/ COCr / vacancies / etc.Thanks for the welcome! 

Additionally, Irrevocable Trusts usually require that a 3rd party be the Trustee, which means that you will not have a primary role in decision-making as it relates to the Irrevocable Trust.