A friend of mine (who I think was in the same town as you) did the same thing. Turned her primary home into an investment property and bought closer into the city. I would definitely check out a good accountant on this one and also chat to your bank as the loan type may need to be changed.

I know what you mean about the travel, I am about the same out of town. We are spending atleast $10 per day on fuel and that is just the basics, no extra running around. We have land here though, no neighbours etc, so are happy to put up with the distance. I am trying to get more organised with travel and with grouping activities together or just foregoing some if it means 2 trips into town that day.