HUD homes as investments

[Chris Hayes]

I didn't know where to put this, so I apologize if it should be in another forum. Does anyone have experience buying HUD homes? I'm looking at a HUD home with potentially quite a bit of built in equity, as well as improvements I can make to force appreciation. The numbers I've run appear good to eventually turn it into a rental. That's where the question comes in. If you buy a HUD home, are there any legal stipulations that would prevent you from turning it into a rental, or anything else that would hinder an investor? If I were to get this house, I would buy it with an FHA loan and live in it for a period of time while doing improvements until I can refinance it into a conventional loan and then potentially turn it into a rental. If there's built in equity, and I can, I'd like to use the equity via a home equity loan or HELOC to buy other properties.