@Opus 17 wrote:
I don't see why that principle would not apply in this case.
Actually, I do not either, after contemplating this scenario for a period of time.
Provided the election is made to treat the debt as nonqualified (i.e., not secured by the principal residence) and is used to essentially replace (retire) the existing debt on the rental property, it is effectively a "proxy-type" refi of the mortgage on the rental property.
