Conventional loans - Mechanism for investing?

[Matthew Carlson]

hey BP folks,

I thought I knew the answer to this question but maybe I'm wrong.

one year after purchasing a home with my hard money lender, I reached out to her to let her know that I wanted to buy a second home.  She was confused as to why, so i told her that I wanted to use the nomad investment strategy - namely, buying properties at 5% down using conventional loans and living in them for 12 months behind turning them into rentals (on Airbnb) - and do this repeatedly for 4-5 years before settling down in a 'forever home.'

she told me that because I was buying homes with the (long term) intent to own them as investment properties (even though I'm living in them for the required 12 months), it could be seen as mortgage fraud.  She went so far as to tell my realtor that I need to be wary of this.  She's now pushing me to put 15% down on properties moving forward so that they are investment properties through and through, even though I plan to live in them for 12 months.

what I want to know is... Is she right?  Is she being overly safe/conservative?  What's to say that I don't just want a new house ever 12 months?  Should I listen to her or move on to another lender?  

i always thought that if you just live in the home that you purchased with a conventional loan, you're in the clear.  Actually, I thought that MANY people fly under the radar doing conventional for pure investment properties (ie not living in them for the required 12 months) - something I don't want to do, just pointing out that what I'm doing is 'less worse' than that.

Anyway, just looking for some wisdom.  Apologies if this has been addressed elsewhere.