Hello, I'm thinking about starting REI in bay area. I have a primary home in bay area and like to finance a new home. I wonder should I apply loan as secondary home or investment property?
Lenders will look at your 2nd home as an investment. The close proximity to your owner-occupied home will be a big reason. If you have enough equity in your owner occupy home you can always refinance out and buy your investment cash.
My understanding is that you can get a loan under a 2nd home if you plan on living there at least one night during the year and do NOT rent it out. If you plan to rent it out or AIR Bnb, it is considered investment property.