I'm in the process of buying a new primary residence. I want to turn my current home which I have a mortgage on to a rental.
1. It is my understanding that I can qualify for a second primary residence mortgage but not sure if that restricts me from renting it out. Any thoughts?
2. OR do I need to refinance my current mortgage to an investment property mortgage to operate the house as a 365 day rental?
Thank in in advance for your help!
You don't need to do anything to your current mortgage. It's one of the wonderful benefits of living in properties you'll one day rent. As long as you live in the property for one year, it qualifies for a primary mortgage, meaning you can buy a house—often at 5% down—rehab it over a 12-month period, and repeat that once a year.
You tend to get better interest rates buying houses that way, and you tend to acquire better rental properties, because you care about where you live, so you focus on higher-quality neighborhoods.
It's my favorite strategy! Best of luck to you!