Move out of the home after 12 months and rent out my old bedroomAfter researching FHA loans, I've found that some people believe this plan to be fraudulent while others say that I can carry out my plan as long as I live in the home for 12 months. 

When investors begin to speculate and purchase on future value, that is not investing, that is taking on risk and gambling.

If the tenant uses ACH as the payment with Cozy they would have to file a dispute for a fraudulent transaction with their bank within 30 days of the ACH transaction appearing on the tenant's bank statement. 

Seems like an easy gamble I would take for sure. 

Negative cash flow is a gamble that appreciation will exceed your cash outflow.Hopefully your house appreciates while you are living in it. 

Or a gambling private lender.

Realistically, (If I understand correctly) sounds like he's got a lot more skin in the game and you are gambling a little because you don't have much experience. 

Doing them beforehand is a gamble.

The caveat is that to be successful the transfer must be done before the liability arises, otherwise the whole thing is a fraudulent transfer and will be disregarded by the court.

My architect who has been in this town for 40+ years has told me to pass on any property needing a varience in Denver due to the difficulty.This one seems like a gamble to be honest.