There is also sometimes a restriction about reselling over a certain amount within a certain number of days.Second, if you are buying from online auction sites such as auction.com or hubzu (these are REOs, not foreclosure auctions) they will sometimes offer to pay for  title insurance, however, if you accept those, and there is a cloud on title, the insurance will be written with a exemption for that problem, which means your HML might not fund you with that cloud in place. 

It is an unusually good relationship with the buyer and I believe he would transfer the deed back to me if I am flexible in the "move out".I am not sure if I am going to resell the house as owner financed or sell outright.  

I would be more than happy to give you the run down of our purchase approach, rehab plan, and resell strategy.

This property is a fix and flip, but I plan on buying at a very deep discount and will resell as is on the MLS.

My idea is to take out a line of credit against our home, so we can purchase properties with cash, rehab, and resell.

(He is trying to resell the house for a profit.)

A few of the houses that have popped up are fixer-uppers.I am looking to make possible deals with people who are interested in purchasing homes, renovating them, and then reselling on the market. 

you need to simply go to a HML and buy this thing first then re sell it.. trying to play the wholesale game could cost you the deal.. plenty of money in it to pay a little for a short term loan

Hi high crime areas, assuming the note is performing then the highest risk is if you ever have to foreclose and resell, the crime rate could affect value.

Flipping or houses purchased with the primary intent of reselling do not qualify.