BUT i wouldn't buy with the intention of selling in 18 months. you never know where the market will go, your closing costs could easily eat up the equity you built up, etc. 

Last Thought:  If your parents plan on exchanging into a property with the intent of renting the property to you, make sure that they are charging you something close to fair market rent for living there. 

A scam artist will have no intention to close so they will ask for upfront origination fees or admin fees. 

There's two different borrowers risk, the underlying borrower is no longer the one underwritten, and you cannot anticipate the new borrower's intentions.

We purchased this light sweat equity 2br/1bath located in Warren, Michigan with the full intent of making it an LTR!

I get that not all circumstances can be prevented, however, there has to be a way to find those not intent on defrauding whether you are the borrower or the one providing the funds...from the wife.

To do that we'd need to examine the contract and the various other factors e.g. the intent of the parties, actual lease payments vs fair market rents, etc. 

The low money down loan options are for primary residences so you would have to have the intention of living there.  

So, the profits (generically, sales price minus cost basis or prucahse price) are taxed as ordinary income also subject to self employment tax.Sale of an investment property, i.e. one that was rented, is considered capital gains.It is your intent of the property that signifies which taxation applies. 

While it is possible to structure things like this for legitimate gifts, your intent is not there since you plan on paying the money back in 2 weeks.