Primary Home convert to Investment property
Hello
I own primary home and am thinking buying new primary home soon. Once I close, new primary home, I will keep my current primary home as rental. (Location: East bay in CA)
Question here: To have some cash cushion for new closing (I have 20% downpayment but in case, I want to have some reserve), I am in middle of processing to have HELOC (as primary home HELOC, not investment HELOC) on my current primary home. Did anyone have similar situation that primary home is converted to investment property with HELOC opened? My plan is once I open HELOC, I will either use the money to buy another investment. And as long as I payback HELOC interest/balance monthly base, I don't need to report to Bank that my primary home is converted to Investment property? This is somewhat gray area that I am not sure what is the best approach here. Thank you in advance for your advice here.