Is it possible to cheat the system ?

[Danny Mittler]

Hey I got an idea I’m sure someone think about it before but not sure if is possible 

If I find a property for 200k I put a down payment 3.5% is $7,000 plus all closing cost let’s say $15,000 from my pocket 

Then I list the house for sell for $350,000 even if the ARV is much less

My friend will buy it from me and also will take a FHA loan and put 3.5% plus all closing costs is about $20,000

So he covered my old loan plus I got extra $150,000 cash 

He owned to the bank $330,000 he will refinance it for 75% and get $247,500 and we got the $150,000 both together is $397,500

We can cover the $330,000 mortgage he got and will leave us with $67,500 profit 

I don’t know if is possible maybe missed something or is ilegal