Using Family Member to float FHA Loan

[Jessie Griffin]

Howdy fellow Pocketers! I have been watching all the podcasts, reviewing all the articles, and reading all the books and there seems to be a recurring theme to get an FHA loan for the 3.5% down and live in the home for a year. I am grounded in a home already and have a family, but I DO have a family member who is a traveling nurse. He moves all over the country (always renting an over-priced apartment) and most of his contracts are 1-2 years. I'm wondering if anyone has had success with "pimping" a friend/family member to get the FHA loan and live in the home for a year? Can the deed be transferred into the LLC while the FHA loan is active (or even after one year)? Would it make a difference if I made him a 1% partner in the LLC? My thought is to find a multi-family, float a note for the down payment to him so he can buy the property in exchange for deeply discounted rent. All the expenses, land-lording of other tenants, and dirty work would be taken care of by my company. Basically, he would be living for dirt cheap rent so we can use his credit for a cheap down payment. I know this opens a whole can of worms regarding taxes, but I read a similar situation that can be done and wanted to hear anyone's personal story? Cheers.