Refinancing Primary Residence for Investment property

[Joshua Shtatman]

Hello all,

Apologies if this is wrong category, but maybe not?

I currently own a condo, since 2015, that I am considering re-financing and ultimately turning this place into a rental property, by the end of the year. When I go through websites to get quotes, they ask if my place is a primary/secondary/investment property. Are there any stipulations or legality issues if I were to refinance as my primary property and then turn it into a rental? Im assuming this is what you would do if you are going through the BRRRR process. But I'm not clean on the actual details.

One more question, if I were to refi, can I also take out a HELOC which id ultimately end up using for a downpayment on next place, or would just a cash-out refinance be the more logical option?

Condo is located in Lansdale, Pennsylvania.

With an HOA, if that matters.

Looking forward to any advice!

Thanks,

Josh

[Whitney Hutten]

@Joshua Shtatman Talk to a lender directly to confirm as loans differ... In theory, since this is your primary, you would refi into a personal mortgage now. You will want to review the stipulations on the loan for how long you need to live there (on an investment loan, you can't live there). I believe FHA are the only loans that have a year-long requirement. You can take a HELOC out as well. Again, look at the loan terms to verify what is in writing.