Buying a HUD investment property in the Owner occupant phase

[Don Chambers]

I am interested in a property that is in owner occupant stage.  In the past, I have only purchased as an investor.  This one is for my daughter while she is in school, but once she moves I want to keep it as a rental.  I don't really want to put her on the deed put I can if I have to.

1. What happens if I buy it without being the occupant?  It's a cash deal.  How do they find out?  Do they really check?  What are the ramifications?  I don't see what damages they could be awarded.

2.  When it moves to investor phase, does it usually have a price reduction?