Buying a house / investment as a homestead?

Buying a house / investment as a homestead?

Dallas, TX · Member since 2014 · 650 posts · 53 votes

i'm looking at a property that could be a homestead.

My job may afford an opportunity for me to move into it and that is my intent upon purchasing it.  However, if things change and I am relocated in the near future, how does that affect the homestead distinction if I rent it out?  I'd prefer not to buy it and then have to sell it very quickly so would like to better understand the way it works as a homestead that later becomes a rental should i be put in that situation.

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  • Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
    9y

    It becomes void when/if discovered.  A Homestead is only applicable to your personal residence, but it can be moved by rescinding the existing and declaring another.

  • Cost Segregation Specialist · Naperville, IL · Member since 2016 · 204 posts · 168 votes
    9y

    Homestead is only for your Home. It's right there in the word, but you could get another one with your next home. 

    This might help explain it: http://www.investopedia.com/terms/h/homestead-exemption.asp

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