give feedback to my 10year plan

[Vio Badescu]

Buy a hud home owner occ at 5 %t ,stay one year ((( can i stay only one year before i sell or i have wait two?)))) rehab add massive sun room with terace ,sell as land contract or lease option with 7 % and at good price. buy another hud investor property rehab add massive sun room with terace sell a year the same way, buy another owner occ. sell the after a year ,do the same think each time.
have 50k cash reserve and 50k remodeling money, I do all the work my self . have job and steady income.
thanks for your info. i am just starting to learn this so iam interested if you guys know the legal aspects, i understand all the other things like location ,price and so on.
thank you.

[Ophelia Nicholson]

Great plan for maybe 2002, 2003 when you could use a lease to show you are renting the old house once a year and buy a new one- not so much for 2011- First problem is the first purchase works-3.5% down, no reserves Stay 1 yrs, lease purchase. Granted you are buying to honestly stay in the home for a year as an OO buyer.
Second property gets a little dicer- First reason is you can only have 1 FHA loan- there are exceptions to the rule but few and far between like your family must have increased since last purchase and you need a bigger house or something like that or maybe you moved from that state but generally you can only have 1 FHA loan. So that rules out fha for your second purchase- Conventional could work with 5% down and MI (Mortgage Insurance)-20% is better however you are going to have to be able to carry both mortgages with your income- If not you will need to have 30% equity in the one you are moving out of- Called A buy and Bail in order to use the money you gain from lease option. Also you will need reserves for the property you are leaving behind so anywhere from 2-6 months reserves in all. New house also has to be more expensive than first house.
Third property gets a little harder- now you need tax returns for first property, you've spent out much of your reserves building a massive sunroom and terrace on 2 homes. Now you definately need 20% down and unless you are buying a way bigger house hard to keep saying you will occupy them. You now need reserves for 2 homes and hopefully you haven't filed a loss on your tax return so you have negative income counting against you. Also need excellent credit.
Okay sorry the trend is apparent here. I'd find out more about financing options and rethink the plan.