My situation:* bought a SFH for $250k as my primary in Portland, OR in 2002* moved to LA in 2006 and turned it into a rental (the home is still in my name, not an LLC)* been renting in LA since my move* want to purchase a primary residenceThe plan:* refi my rental (I'm on an adjustable @ 5% right now)* cash out $150k @ 4% for 30 years (home is worth $550 now)* use part or all of the $150k for a down payment on a primary residence in CA or NV* secure a 30 year fixed rate mortgage on the new home* get back into a home of my ownAny issues with using a cash-out refi on an investment property for a down payment on a primary residence?

Ok @Alan Ford, my 2 cents on the area is this: Beachfront locations are always a decent bet all things considered.Just about every survey and study I have ready about STR vacation locations list beachfront destinations as near the top.

To clarify: You mentioned appreciation of $800k But gain will be Calculated as:Sale price <Less> Adjusted basis (purchase price + purchase costs- depreciation)<Less> Improvements you made <Less > Selling costs 

A minor adjustment.

Then when your mortgage company gets the tax bill to pay, they'll pay it, analyze your escrow, refund the overage (or charge for a shortage), and adjust your mortgage payment going forward with the actual estimated taxes based on a real tax bill. 

With rates being so low right now on a 30 year loan it's a hard decision to take an adjustable loan. 

I bet Colorado Springs is a beautiful area.

I would bet a few more locals would respond there rather than some yahoo down in Texas.

I know this because I have recently had 2 properties with fuse boxes appraised for re-finance, and when making adjustment for comparison to comp sales I have never seen the appraiser adjust even $1 of value for upgraded electrical. 

@Ryan Ray When doing seller financing, if the seller insists on int'rest just adjust your purchase price up to avoid violating the Dodd-Frank and still get seller his money.