FHA loan (owner occupied) vs. Hard-money Refi (flip)

[Shane M]

So I have been advised by a 50+ home flipper who has been in the business for 25 years in this area to go for an FHA mortgage on a property I wouldn't mind moving into and then to eventually sell it. Does it violate any FHA guidelines to move into a property with the ultimate intent to sell it? Does anyone really care anyway? Do they lock you out of selling it for a certain period of time? How can they stop you?

I guess you wouldn't be able to transfer ownership to a company, so that rules out renting it out under an LLC. And I guess you couldn't "expense" your rehab if you were an LLC as well. Would you need to be a sole-proprietor (seems like a bad idea to me).

I kind of mentioned hard-money lending but he is a very conservative flipper and prefers dealing with his own funds. So he seemed opposed to them. The main risk for hard money lending is not getting a low enough ARV (and the hard money lender I'm working with is asking 50-60%) and having your repair costs coming in at the right place. Plus actually being able to sell. But even if you can't sell for the term of the hard money loan, couldn't you refi that loan into traditional financing without many problems? (Assuming the home post-repairs appreciates for the full ARV).

When looking at the advantages and disadvantages of each, which would you chose or recommend? Am I missing any vital info. here? Thanks!