@outs222 wrote:
Do I have to make the current property an investment property through my lender, or can the new home my fiancee and I purchase be considered a 2nd home?
Your lender, in all likelihood, required you to sign the standard Fannie Mae/Freddie Mac single-family mortgage instrument which requires you to occupy the home within 60 days after signing and use the home as your principal residence for at least one year thereafter. Since you are planning to comply with those requirements, there is nothing more you need to do with respect to your lender; you can use the property as you desire following that one-year period (or at least any use that does not impair the lender's security interest).
With respect to the IRS, the home would most likely be considered a second home (with your deductions limited to property taxes and mortgage interest as itemized deductions, subject to limitations) since you are allowing immediate family members to occupy the premises.
