@Craig CurelopI'm nearly finished with the book, and haven't come across an answer to a question.I understand the need of living in the property for a year to fulfill the primary residence portion of the loan and avoid mortgage fraud, but I've had two lenders recently tell me that even after a year, I need to have a reason to move if it is in the local area, or if I'm downsizing.

I’ve never understood the societal norm of working in the same job or industry for 40 years, retiring at 65 only to live off a merger pension and social security.

While it is good to fulfill an obvious need in the marketplace, is there a particular reason why another investor has not pull the triggers?

Also, if the lien cannot be fulfilled 100% can they stop us from closing and thus I don't get my 50% even?  

This speaks somewhat to the macro and institutional and highest-level societal issues (e.g., why do we have so much income inequality such that three people own as much wealth as 150,000,000 combined?)

Contract or no contract it looks like he is not fulfilling your needs and you should probably move on to one that has your specific metrics in mind. 

If both parties act in good faith, then it makes it easy for everyone to fulfill their responsibilities and close the transaction.

Purchase: $80k-$130kRent: $1200-$1500ROI: 10-14%Cash flow: $250-$350/doorAppreciation: Double digit (for past 10 years, will gladly send data)Location: C+, B- (suburbs and certain markets)We have over a dozen Fortune 500 companies just in Metro Detroit with huge Healthcare, Auto, mortgage, Amazon fulfillment, and more jobs.The bad reputation comes from OOS investors wanting $20k D market properties.

I have to be over there almost daily keeping up on stupid things and decisions the sub-contractors do not fulfill.

The short answer is this:  if you moved out before the year requirement is fulfilled you could be subject to a penalty or worse, but there are also plenty of FHA approved “reasons you may have to move earlier than a year” so, as an administration, they’ve set it up to be pretty understanding.The other part to this is getting the future loan.