He will lie and he will commit fraud to profit. 

I know in Texas if you do not own a primary or investment home already they will want you to borrow in an entity to avoid occupancy fraud risk.

Most think its harmless to skip after a few months and rent the home; this is considered fraud.

You can easily circumvent all this fraud BS with the pit bull service/ support /nutcase dogs .

If you take two comparable homes of equal quality, condition, age, features and location but differing sizes, the smaller home will invariably show a higher value for $/sq ft.That number is somewhat useful in a development where there are cookie-cutter homes that are identical in every way, but unless the development is new, some will have been upgraded and/or updated and others will not.Your best bet is to get contractors in to bid on both a gut rehab and a tear down. 

Usually you want a CMBS loan to only have fraud and bankruptcy as recourse provisions (very narrow instead of broad).When an assumption is done you can waste 6 months and not get anywhere.

Isn't this considered trespassing and fraud? 

If you bought 5 identical units for $500K then each one of the units would have a basis of $100K. 

Fraud?

Explain you gave him an opportunity to work with you and he frauded you.