It’s possible, if you have the savings for a second down payment. I’m pretty sure you also lose certain tax advantages if you convert your primary home to an income property. Depending on how long you’ve owned it, that can work out to a serious hit.
You can’t deduct the mortgage interest (you can on the new primary residence though), but suddenly every dollar you spend on the rental property is tax deductible as a business expense. And you can like deduct depreciation on the appliances and shit. It’s actually more tax advantaged in some situations.
It’s possible, if you have the savings for a second down payment. I’m pretty sure you also lose certain tax advantages if you convert your primary home to an income property. Depending on how long you’ve owned it, that can work out to a serious hit.
You can’t deduct the mortgage interest (you can on the new primary residence though), but suddenly every dollar you spend on the rental property is tax deductible as a business expense. And you can like deduct depreciation on the appliances and shit. It’s actually more tax advantaged in some situations.
Check with an accountant. In some cases you are better off not taking a deduction. It depends on a lot of factors that an accountant whould know.
Yeah, I have a lot of experience in this area, including accountants and lawyers.