I'm recently buying a 2nd house. We are not sure if we are going to move to new place and rent out current place yet. I live in California.
I have a lot of questions regarding tax and deduction for either investment property or owner occupied property. I've tried to search online, but they don't come out as a straight answer. It just confuses me more. Okay, here are my questions:
1. What is the risk if we purchase a house as owner-occupied and thinking we want to move there, but later we decide not to and rent it out?
2. What is pro's and con's in tax-wise of purchasing an investment property or owner-occupied property? (in generally)
3. Mortgage agent told me that the house we are going to buy can be eligible for owner-occupied or second home because the 2nd house is close to our work, it has good school district, and it has a yard (the one we are living is a condo). He said we can use the reason of "improving life" to get lender approval for 2nd home. What is your opinion?
Our most concern is re-sale tax though.
Thanks.
Read more: Investment Property v.s. Owner Occupied?
