In an attempt to clean up the industry, legislation was written by those who 1) had never been lenders themselves and had no understanding of the industry and 2) their biggest campaign contributors were big banks (look up Barney Frank, Chris Dodd, and Elizabeth Warren's campaign contributors at the time and you'll see big banks).

However you can pay contractors for a flip....and the creative ppl here are surely able to get around the mortgage or paying yourself restrictions...If you were to use Plastiq up to this point and pay a bill using you are using your revolving credit (CCs) as intended.

@Sabrina Savillo I think Jacob and the others point out a very good thing regarding deal flow and the ability to find one replacement property within the time restrictions of a 1031 Exchange let alone needing to find 2.

Here is the Suntrust 2008 FORM 10-K page 35 https://www.sec.gov/Archives/edgar/data/750556/000119312509042448/d10k.htm that sums up the debt instruments they called for my company and tons others in 2008: "We discontinued originating first lien Alt-A loans to hold on the balance sheet during 2006 and until mid-2007 originated a small amount with more restrictive credit guidelines for placement in the secondary market.

The program isn't designed for investors and to me there are too many restrictions.

There is no zoning restriction for the number of family members living in a home as long as blood, marriage, or adoption relates them."

Of course, you will want to make sure there are no deed restrictions.

check out ocean lakes resort myrtle beach sc, you can get into a lot of properties for 600-800k stilt beach home-4 -5 bed with a 70-90k gross revenue. great rental area, has no str restrictions and is 318 acres gated and secured straight to the ocean.

They can also put in rules restricting rentals.

Any other deed restrictions, use restrictions or other misc. items that are adverse to your objectives?