If you play the Cashflow 101 game on a regular basis, it may help.

You are an investor so Dodd Frank is not even in play.

But if you get caught there will be consequences.  1031's come into play when you sell a rental and buy another one.

It's a nice physical break from playing on the ipad all day...Of course I love all the strategy involved with the financing, acquisition, and development associated with bringing a newly acquired property to its highest and best use.

It's not illegal if that is what you are asking however some would argue there are some ethic and agency issues at play being an agent doing sub2 deals.  

Any payments on the balance remaining from the original loanmust be included in the DTI ratio calculation for the refi transaction. o Funds received as gifts and used to purchase the property may not bereimbursed with proceeds of the new mortgage loan The new loan amount can be no more than the actual documented amount of theborrower’s initial investment in purchasing the property plus the financing of closingcosts, prepaid fees, and point on the new mortgage loan.

@Bryce Witherspoon There are so many variables at play here:  Was the property his primary residence?  

I recently purchased a quad-plex and and the terms of the financing is I need to move into one of the units within 60 days.I didn't know who I wanted to evict but I figured it would play itself out within 30 days.

Not my day-to-day favorite play but I've made several $100,000+ deals.Rick Dawson has several related course on the topic.

It is not just about recourse, redemption and other capital management ideas come into play.