Sometimes you might acquire a foreclosure property that you like so much that you keep it rather than use it as an investment property. While all real estate you purchase is an investment, it's not uncommon for the real-estate investor to decide to move into a foreclosure property.

You need a place to live, so why not enjoy one of the gems you found while working in your real-estate investing business? It only makes sense, especially if it is a place where you want to live and it is affordable.

For tax purposes, it is always easier to change a property from a private residence to an investment property as opposed to changing an investment property to a noninvestment property. Should you ever change an investment property to your primary residence, be sure to consult with your tax advisor.