I do not think that "everyone" does this. I know people who own rental properties who I know do not do this. It also requires that you be consistent in your lies across different entities including on your state and federal tax filings. I don't think that you need to be a Ken Paxton level 1/2
scumbag to do this but it tends to be people who live with a strong sense of impunity.2/2
"Investment property" vs "primary residence" is a bigger difference than secondary residence or vacation home vs primary residence, which can be a philosophical question, especially, say, during the COVID-19 emergency.
Covid/post covid has definitely blurred the lines, but most of the time it’s not *that* difficult for the lender to see which is primary and which is 2nd