@Dennis M. How do I avoid the bank? I'd be saving up money for 60 years if I had to buy even a distressed home with all cash. Even saving for 20% of something in my area would take me years
Chances of getting caught? Not particularly high, but people do get caught. It is mortgage fraud. And taking your time rehabbing doesnt do anything, you need to occupy the property within 60 days of closing.
Why not just buy it, move in, satisfy the occupancy requirements, then move out sometime in the future.
You can finance a good deal lots of different ways. Friends and fam, bank, hard money lenders, etc. If it's a good deal you won't have a problem finding a partner. Especially if you're a contractor that can do the labor to rehab it.
I know you mentioned that you didn't want to move out of your current home but if you're willing to suck it up you could obviously rent out your home, move into one of the units for a couple years to satisfy FHA requirements and then move back to your original home. Just a thought.
If it needs significant work it may not qualify for FHA anyway.
I'm with Russell. Save 5% (conventional ftw), then move in for a year. Problem solved.
P.S. I guess it's true that most criminals get caught over simple things (like using your real name on a forum and asking for advice on breaking the law).
Hope you're at least working on your Eskimo kiss technique if you do end up trying to play games with the FHA.
@Account Closed Yea I would say satisfy the year then perhaps execute parts of this business plan while you are in it. Yes cut on profits but you start clean.
Paranoia is bad for business lol
Hard money loans and or fix or flip loans. Then BRRRR!!!
@Russell Brazil Yeah I'm thinking the same thing. Thanks!
@Aaron Flake Thanks, good idea!