HUD Investors... Important Question.

[Justin Ashley]

Hi All,

I've purchased 3 HUD properties in the last 3 years. One of them I lived in as an Owner Occ. for 2 1/2 years. The second one I purchased as Investment property. Now I'm on the 3rd one (which we bought as a owner occ.) a little over a month ago and we are thinking of selling it to upgrade our investment.

My Question is HUD requires owner occ. to live in the property for one year and before they can buy another Owner Occ. it must be 24 months from the previous Owner Occ purchase.

HUD's WEBSITE Quote: "An owner-occupant is a purchaser who will live in the house as their primary residence for at least one (1) year and may not purchase another HUD home for two (2) years thereafter."

Can I sell within a short period of time (one month / after remodeling the property) and suffer no penalties other than we can not purchase an Owner Occ for 23 months from now? What is the first part about "live in the house as their primary residence for at least one (1) year? " and if we don't what happens????