Can you only do this once?
I think you can do this several times.

Here is a senario:
You buy a place as your home (primary residence) and then upgrade after a few years (ie new home= new primary residence). The first place you rent out. Before six years is up on the first place you sell it.

You could do this again for the next upgrade.
The tax office looks at the intention of the loans to see if you can claim interest. Both original purchases were not originally for investment purposes.

To make the six rule even more secure in the eyes of the tax office you might need to move back (to renovate it) then sell.

What do you think?
Is this possible?

Steve,
You indicated that you have found another Ballarat property using the “11” second rule. Since reading your book I have been trying to find that illusive “ripe apple” and am wondering how many towns (i.e. markets) you have a background on and keep an eye on. In that; I’d suggest that you know the Ballarat market quiet well. How do you keep across these markets? Where do you source most of the leads? (i.e. from the Net, local paper or Agents etc)

I have two I.Ps in Canberra, one of which is +ve cashflow (more good luck than by design). I have been scanning the local paper and local Net service (Allhomes.com.au) and have not been able to apply the formula in the affirmative to date. I am now just starting to look at regional areas, but to get the feel of these markets will take some time.

Cheers