Beginner help: Owner-occupied convert to Rental
Howdy BP Community,
I am fairly new to BP, so sorry if this is a basic question.
I recently listened to BP podcast episode 336 interview with @Robert Jones, and fell in love with his BRRRR-like strategy of taking an owner-occupied mortgage, living in it for a year and a day while improving the home, then renting it out and moving to a new owner-occupied mortgage home.
My questions are:
- I would like to use this strategy, but what is the minimum amount of time I could live in a home before renting it out? Obviously I do not want it to be mortgage fraud (because I sincerely want to move homes at least annually while improving it).
- I know you need to move into a home within 60 days after closing... is the minimum for moving out a year and a day? Or is that just for tax benefits?
- Also, if moving out before a year and a day is legally fine (i.e. not mortgage fraud), what are the tax implications (tax benefits/deductions) of moving out earlier than a year vs. later than a year?
I know this information can vary regionally, so just looking for overall guidelines here. And for region-specific info, what kinds of terms should I search online?
Thank you all you masters of the REI world!
-Steve