203k Loan but DIY Rehab?

[Noah Barba]

Hey Biggerpockets community, 

I am currently working on figuring out financing options for my first potential rental property purchase. I'm 20 years old and am in college, so money is not something I have much of. For that reason, I'm looking into private money, HUD sponsored financing, etc. I've learned of the 203k loan before, and I know that one of the requirements is that you have a licensed and insured contractor estimate your costs and do the project for you. HOWEVER, I plan on starting off doing most of my rehab work as I have been in the renovations field for a little over two years now. This causes a dilemma, as I am not currently a licensed and insured builder (although I plan to be in the future).

My question then is: since I am friends with multiple licensed and insured contractors through work, should/can I use them as my contractor in the eyes of HUD, all the while doing the work myself? Although this would be a favor, I understand that the paperwork is a burden along with the potential liability that would be tied to my work, so I would make sure to pay my "contractor" for doing this for me. After all, they would be providing me a service.

Is this a potential mess and bad idea? Or could this be an efficient use of creative financing/thinking? Thanks for reading and anyone who can help me understand!

P.S. I am looking for a duplex, so this will be owner-occupied