Can I sell a HUD home bought as owner occupied?

[Jonathan Cronkite]

We would like to buy a house near where our daughter goes to college. We're looking at a HUD home and submitted an offer. I found out today that HUD requires the owner to keep it for a year before selling it. Is this true? How can they enforce this? An investor friend of mine said investors buy HUD homes, act as if they are going to occupy it, fix it up and then turn around and sell it with no consequence. Anyone have any experience in this? We would like to purchase it and then if needed put it in my LLC and get a fix and flip loan... Hence my questions. Jonathan

[Greg H.]

There are no deed restrictions on a HUD purchase. You will however sign a document stating that you will occupy the property for 1 year.

If HUD investigators came to you and asked you why the property was never owner occupied and sold within the year, what would your defense be?