Depends on perception what is wrong and right, but I would have to agree with Upen since you said you bought the 2nd home as a "primary residence," with intent on living in the property (so you mentioned to the bank) and then mentioned you went back on your intent and rented it out since day 1 there by defrauding the lender to obtain primary residence terms while the real intent was to acquire the property as a rental property/investment.As for the other question you mentioned can you keep buying primary residences with 5% down (in US only) you can as long as the scenario makes sense and the loan amount is 417k or lower (10% down is required for loan amounts in excess of 417k loan in certain areas of the US, dont know about canada).Good luck to the loan officer who works on this scenario, because he or she would be putting their professional license at risk for collusion with the borrower.

The excess dirt was used to fill in some low spots and some grass seed solved the rest.Some time later that man too converted to gas heat, pumped the oil across the street into his neighbor's tank, pulled out the fill and vent pipes, and 95% forgot about his buried oil tank.Fast forward thirty years and the man was pondering selling his house.

During housing downturns I find I can purchase properties from other investors who borrowed excessive funds to buy real estate.I guess(if it were me) I would do one flip per summer and accumulate rentals as I had funds.Like I said, no one can tell you what to do.Good Luck on your properties and your decision.Bill

I know a lot of times we get hyped up over hearing about “no money down deals” where we can invest in real estate without really giving anything up, and as amazing as those deals are, the reality is for most beginners who don’t want to wait several years to save up the necessary funds or don't want to dabble in wholesaling, the answer is liquidating unnecessary or excessive assets.For me, the money to invest in real estate was sitting covered in my garage, its wheels roughly 3” off the ground and supported by 4 jack stands – and it had been sitting there that way since the last October when I returned home from one last cruise through the crisp fall air.

That being said I do believe in diversification and want to start putting money into this type of investment with excess cash flow.  

Anything I make in excess of 4.2% adds value on top of what my cash value is earning.

I prefer to leverage up my properties and have more of them rather than tie up excessive cash in renovations. 

Creditors who reduce the interest rate on the obligations of a servicemember must forgive interest in excess of 6 percent.The reduced interest rate provision applies unless a court finds the ability of the servicemember to pay interest on the debt at a higher interest rate is not materially affected by his or her military service.

I think it would be a good idea to take advantage of the lower interest rates now, but I would also caution about taking on excessive debt right now.

So unless the house is excessively overpriced, most appraisals will come in right where they are expected to.