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?

[Greg H.]

You will be committing fraud if you buy the property as an owner occupant and you will not be occupying. You would be signing documents with HUD stating as such

The best legal way to as your daughter would be the occupant is to put the property in her name with you being the lender