House hacking a vacation rental?
Hi all. I was laying there in bed at about 12:30 last night when I thought about something and was wondering if this is possible.
I was thinking about FHA 3% down on a duplex-4plex. Wife and I are in our primary res, which will be paid off in a couple months. Buying the rental prop as my primary residence (house hack), and moving into one of the units, rehabbing, then renting it out on VRBO or AirBnB. As tenants leave, rehab the next unit, rent it out, or of the vacation rental plays out well a second vacation rental. Then appraise, and raise rents based on higher capex.
I don't think I would refi except to remove the mortgage insurance.
1. Could a married couple split primary residences? (I have an LLC being set up this week) and we currently file joint, but that might have to change.
2. Could I get into trouble renting out the "whole house" that is my primary on a vacation rental?
3. Could anyone answer the tax implications of the income from vacation rental in AZ? (I know I should talk to my CPA, who's also setting up my LLC) but was trying to get a ballpark on this.
4. Anyone have a maid service or the likes that handles AirBnB type cleaning? What do they usually run a month? (I thought about doing this myself part time as it wouldn't be hard but check in time is an hour before when I would have to get my daughter from school.)
5. Is the house hack even worth it if I don't plan on flipping? Investment rates I'm getting are currently 4.75% but 25% down vs 3%.