I’ve helped people who have done exactly this, but no longer possible around here.
Correct, not presently possible in San Diego, but possible in Northern NJ, other suburbs of NYC.[/quote]
It’s still possible in thousands of areas in at least 48 states, including CA.
Many people could retire on the income that they could create from the equity they have in their So Cal/Bay area homes if they were willing to relocate.
When I was a kid, rentals were basic 2-3 bedroom starter homes. Having higher end homes as rentals were rare.
There are many more these days.
The opportunity to sell a primary within a few years of moving and taking the tax free gain (and investing elsewhere) in most cases makes more sense to me than converting to a long term rental and losing the tax benefit
