-NB Hi Nick,It's commonly overlayed, but there is no longer a Fannie requirement that you have X% equity in the departing primary residence. 

After that you either you and your wife or would be wife can use rest of cash to buy own primary residence or do another house hack. 3) Married with children:  Buy your own primary residence, small, easily maintained property with low down payment and use as much first-time homebuyers programs out there to reduce use of personal cash.

I have read that not all townships allow that if it is not your primary residence though.I have a friend whom recently purchased a two bedroom apartment in Union as her primary residence.

Primary you can cash out up to 80% but it always to stay lower and see what will be difference in interest rate.

I own a primary residence in rural Connecticut as well as an investment property in Raleigh (my spouse owned before we met).  

@Josh Wallace that limit only applies to primary and secondary homes.

You can also buy a duplex in a place you want to visit so airfare and hotel can be tax deductible against your profits.To answer your question, the IRS deduction on capital gains is only valid for your primary residence not a vacation home.  

And, that might prevent you from moving out of your primary residence at a future point.  

By the last year of our marriage, we had sold our vacation home at a $100,000 loss, lost our primary residence in a short sale, and moved to successively smaller rental homes.

The primary policy of the LTB is not to evict and aside from non payment of rent adjudicators generally will not evict.