Advice Needed: Can this work?

[DeMario Drummond]

I would like to buy my next property as my own home and I would like to somehow "hack" the process. I don't want a 15 or 30 year mortgage. I originally wanted to just save up 70-100k and try my luck at a dfw auction for a 4bd+ w/ pool.. I've recently secured a hard money loan, but I can't take it to the auction. I need to have a deal/house in mind before I submit the application. The loan officer said that wholesale or pre foreclosure would be my best bet.

With that being said, Im not sure what's the best approach.. The little RE experience I do have is in buy n hold. With wholesale or pre foreclosure, I don't even know what the numbers would look like for a good deal. Any advice? And could my general idea work? Could I buy a wholesale/pre foreclosure with a 3yr hard money rental loan as my personal home(I have a "friend" ready as the renter of necessary), and pay it off early by paying direct to principal? I don't want to break any laws, so please let me know if any of this would be illegal. Any help is greatly appreciated.