Doing so puts risks back onto you... unnecessarily.Your head's kind of in the right place but your intentions could be much better served practicing IBC as it was intended to be practiced.You're 10 months into this now and still haven't acted.

I was looking for a primary residence at first with no intention on it becoming an investment property.

Social programs are at such a level now that people choose, by intention, to go various welfare as a career.

The Skeptics Take:As was said many years ago by some old French dude, “the road to hell is paved with good intentions.”True.

My investor bought it for 65k with the intent to gut the house and sell as a nice fully rehabbed 3 bed.

It always amazes me on different vacation rental forums when hosts are always quick to assume the worst of guests and their intentions.  

Often it's not intentional, it's that without regularity and familiarity, the target moves. 

Let alone cover legal costs of a lawsuit.I am unclear how you can convince someone that bought a property on a wrap in good faith, that they must now sell, deed back or lose the property to a DOS call.The clear reading of a due on sale clause is:“the intent of which is the transfer of title by Borrower at a future date to purchaser.”Once a loan has had the Due on Sale called, it is tracked with special interest from then on.

So this hooking of the chain is an intentional act. 

I've had to pay for some insurance premiums and some late penalties on property taxes but i can say, I've never been successfully sued in 15 years, because our process is well documented and its not a pattern or pervasive or malicious in intent (Some elements needed to sue in my opinion) if we make a mistake and, I've always made the borrower whole.