A Hard Money/Private Loan/Refi Trifecta of Help Please

[Cosmo Iannopollo]

Wife and I found a gem of a house that will not qualify for a rehab loan, but offers a chance to sell for $150K+ ARV based on the neighboring comps.

The issue is that we're looking to turn this into our primary residence. I've been told hard money lenders will not loan for owner occupied in Massachusetts. 

OK, so maybe we flip it...but what if in the midst of our flip project we decide we really love it and want to stay? Will most banks/lenders appraise a project once it reaches a certain point (say, if the water damage has been mitigated)? Will we be in violation of anything if we do decide to stay at the end of the project? Can we sell it to ourselves?