Minimum stay in a OO HUD before flipping?

Question

We are looking for a house to flip *and* a duplex to house hack as our lease is up soon. We are a family with several young children so we need to be picky about where we live and what kind of live-in renovations we do.  A nice HUD house was listed ( nice as in, not the ghetto, family neighborhood) but the first week of bids is only for owner occupants. It’s a house we could stay in but not long term because of its size. And it’s not our target neighborhood to raise the kids in.

In this scenario we would buy the house, perform the renovations and when our lease is up go live in it- but also put it on the market ASAP. And probably not spend much time there at all as three little kids can undo a renovation fast haha. We would only be physically living it in perhaps a matter of days.

Has anyone done this? Thoughts? We don’t want to be dishonest. Our lease is truly expiring, and we are looking for a house to flip. But we would not be doing this to live there permanently. We have no experience with HUD yet. Our agent isn’t aware of a minimum stay requirement for owner occupants.

Scott L. · Answer

I think that’s what the OP said. What is the minimum stay that HUD will contractually specify? It’s not dishonest or fraud to meet the minimum contractual requirements regardless of what your intent is. If it’s one year, then it’s one year...fine. If you lose your job or meet some other HUD specified criteria to leave early, then you leave early, regardless of your “intent”.

Brie Schmidt · Answer

@Pam Janovyak - They will make you sign a certification, usually that you will occupy for 1 year.  Also if you are using a low money own loan that will require you to live there for 1 year.  But after that year you can move into another place and sell this one

It is a little beyond dishonest, it is a federal offense called mortgage fraud if you certify that you will live there for a period of time with no intention of doing so

Pam J. · Answer

Thank you @Greg H.

Greg H. · Answer

You will sign a form agreeing to occupy within 60 days for at least 1 year. If you meet those requirements, there is no issue

Pam J. · Answer

@Brie @Brie Schmidt thank you for your reply. this would be a cash transaction. To be crystal clear here- I am not interested in getting away with fraud, I am interested in becoming educated on real estate investments of all kinds.  I know house hacking is a term and strategy I’ve read about in the forums, and I was curious if this was a way to do that.

@Scott L. worded it better than I did- if there is a minimum, I just want to know what it is so we can decide if it’s doable for our family and our goals. If there is no minimum and others have gone this method to flip houses, I wanted to hear experiences and advice.

Minimum stay in a OO HUD before flipping?

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