Live in second home or first home?
Long-time listener, first-time, um, writer. I've searched all over the place, and I'm having a hard time finding whether it's generally better to purchase a second home as an investment property, or move into the second home, and rent out the primary residence. I just refinanced into a 15-year fixed conventional (40ish% equity right now), so I have to live in my current home for at least 2 years, which is fine, because I'll need that time to save up the down payment either way, and I have a hunch the market in my area will dip by then. I would be fine with moving into something much smaller (4000 SF is just too much for one girl and some dogs), but would also be fine with just staying put and buying something small to rent out. Is one method more tax-advantaged than the other? Does anyone have any general advice that I wouldn't have considered? I'm squeamish about using a HELOC or anything like that, and wouldn't be comfortable with the purchase unless I thought I could handle both mortgages with no tenants if need be, so I wouldn't want to put less than 20% down either way.