I currently have my home all paid off. I am thinking about purchasing another property as my primary home, and renting out my paid off current home. My question is should I:
- Get a regular loan for the additional property
- Get a cash out refinance on my current home and then claim the interest on this new loan as an expense and use the proceeds from the re-fi to purchase the other home.
Basically can I claim the interest on the refi as an expense?
(This is for California)