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Investment property or Primary resudent property

Hi Friends,
Need some help here. I am resident of State-A and traveling on job to State-B. I feel, State-B is good to settle for long term and want to re-locate after one year from State-A to State-B. As I have one good deal to buy a home in State-B, would like to buy now. In this case, my questions are:
1) Do I need to buy this home in State-B as investment property or as a Primary Resident?
2) If I buy as primary resident, then I can't relocate from State-A to B within 60days. In this case what do I need to do?
3) If I buy as investment property, then once I relocate from State-A to B, can I transfer this to primary residence and what will be the tax implications?

Appreciate your feedback and guidelines in this.

Thanks,
Sap
  • May 07 2012 - Atlanta
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Answers (4)

Profile picture for Ofe Polack
There are two issues here.  I suggest that you meet with a lender and discuss your situation.  Then once you have the answer from the lender have a word with an accountant to reflect on the implications.  I do not understand why would you need to wait 60 days to relocate?  If you rent your present home and have a contract on it, the lender will take that into consideration when processing your loan application for your primary residence.     
  • May 08 2012
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I am guessing there is a loan involved with this one. There is no problem whether primary or 2nd home or investment if you are paying all cash.  If you do have a loan, talk to Wells Fargo - They have just about the same rates for first and second homes, but then investment is different.  

You would want to talk to an accountant about the tax implications, because if you are receiving income from renting the home then there is going to be some things only an accountant should explain, or just buy some real estate rental investment books.  There are not any accountants who post much on Zillow if at all.  Hope this helps you. 
  • May 08 2012
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Profile picture for Ofe Polack
Can you elaborate on your question please...?
  • May 07 2012
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What are you trying to accomplish?  Is it for investment purposes?  Are you renting now?

Talk soon,

Marco.
  • May 07 2012
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