Most of the time, unless you bought many years ago or got some other crazy deal, primary homes don't make good rentals because you paid too much for them to ever really make any money.

The topic bounces around every so often. 

Hey Chris would love to visit.  100% of my business is helping clients in all 50 states with purchasing vacation homes/STR properties. 90% of my clients use the 10% down loan because the lower down payment requirement and rates/cost similar to a primary residence.

I am currently house hacking my primary residence in California and just bought a rental property in Indiana. 

I own my primary residence and want to build a DADU on the back of the lot.

The primary form of diligence we see on the forums is "what do you think of XYZ sponsor and deal" whereas the common form of diligence in the space by institutional investors, large investment groups, family offices, and sophisticated investors involves following the sponsor for years, underwriting the deals, validating rent comps, background checks on the general partners, and a host of other diligence that materially de-risks the investments.  

Primary residence loans are less risky than investment property loans, which is why they have more favorable terms than investment property loans.

I am finding that most credit unions will only do helocs on primary residence.

@Kyle Kline“Investing for equity and not cash flow” doesn’t mean “buy properties that don’t cash flow.”To me, invest for equity not cash flow means that the PRIMARY reason to invest is for equity growth and an increase in net worth and NOT cash flow.I’ve been investing for over 40 years and while cash flow is important, it’s not why invest.A property must be self supporting ie produce enough cash flow to cover debt service, operational expenses including repairs and replacements.

And once you convert it into your primary residence it is no longer eligible for a 1031 exchange.