The answer isn't always yes.Here are some options for you:Do a cash-out refinance on your townhome, use that money as down-payment on a new home. however, if you have an awesome low interest rate you would lose it. 

Thanks Costin for the pointer to the book (and the flow chart).To answer you Q's: I manage my properties myself.A couple of follow-on Q's: a) Can you elaborate on "you guys in CA are different kind of special"?

I think the only right answer is whatever the best answer for your particular situation is.

I've seen other posts that suggest conducting an ARV analysis to get this answer, but I just don't have enough experience (or confidence) to trust the results that I would achieve.

This is where working with the right loan officer can make or break you.To answer your question, you will sign a Mortgage at closing, in which you declare that you will occupy the property for at least 12 months.I am not an attorney, and so I will never give you advice of what you should or should not do in this situation. 

@Blair Matejak The only question I can answer w/o being an lawyer and reading the agreement you signed is yes, he can put a lien on your building, with or without reason.

Much of the following depends on your capabilities and cash position, but I've always given people the advice to buy their first home with a 'safe' outlook with regards to appreciation, and schools.I don't know where you are at in life - if you've already made your first purchase, etc - but so far so good on those that have taken my advice.I think later on in life, if someone so desires and/or has the knack, is when it's appropriate to get into what a lot of folks on these forums do - the more aggressive projects where there's more money to be made.This is a round about answer but yes it's possible. 

I tended to assume that most people wouldn’t reply so negatively and would be respectful in their answers as well (feel free to see the rest of the professional, helpful replies on this thread, for reference). 5.

As we all know, markets change so don't take this as a final answer. 

.), not just cash return, but that starts to get a bit speculative.To be clear, I'm sure the answer is that I'm not looking in the right places, or perhaps not analyzing accurately.