Hi Brandon - this is exactly what I did as my first REI deal. To answer your questions.
1. Statute of limitations regarding owner occupancy in the 203k are only effective until up to one year after the loan. After that, they aren't able to fine you.
2. Make sure you poll your network on what mortgage brokers they have, and once you get a list, interview them all, asking them how many 203k's they've done, and if they can give references. You MUST find someone with experience with the loan, otherwise it can get messy. I learned this the hard way.
3. In my case, I bought a bank owned duplex, and put $100k of rehab into the property. It was a big flip. It took about 8 months after closing. Once done, I had built enough equity into the flip to refinance out immediately into a different loan. Once I was out of the 203k, I then no longer had it as my primary residence, and now rent out both units for a strong cash flow.
4. Nope! That's one of the pro's of a 203k. You are the only "mortgage" that can bid on bank owned.
Please reach out if you have any specific questions, I didn't have much guidance when I did it, so I love giving people the help I wish I had! haha. Good luck!
