convert residence house to investment property

Yes you can turn your current property into an IP.

You might want to covert the repayments to interest only if you're planning on purchasing another owner occupied home.

It would also be an idea to have the property valued now so you know how much it was worth when it became an investment property. This is important if you ever sell it and are required to pay CGT – the valuation will help your accountant work out how much CGT is payable. Hint – a high valuation comes in handy here.

You can use the equity in your current home (soon to be investment) to purchase another owner occupied home – but the equity that you use won't be tax deductible (because the purpose is to purchase an owner occupied property rather than an investment).  

For that reason, you need to structure the loan carefully so you can identify which debt is tax deductible (the current loan securing the current property soon to become an investment property) and which loan isn't tax deductible (the equity that you extract to cover the deposit/costs on your next owner occupied property).

Please also make sure that the broker/banker you decide to use doesn't cross collaterise your investment property with your owner occupied property.

Hope that helps.

Jamie