We have two flip homes and are possibly looking for investors, or to get a loan.

The general idea is that you must acquire an interest in real property you do not already own, and since you already own the subject real property you want to build on, the transaction must be structured so that you are creating an interest in real property you do not already own (in fact, it does not yet exist).

@Damon DidditI would contact your real estate attorney now for an honest opinion on costs and timelines if this did go to eviction.

Mesne profits is a measure of damages for the unauthorized use of real property. 

Population decline has slowed, and key neighborhoods are seeing real growth.

Read a few books on real estate investing to learn the power of leverage.

Either way, if your real question is whether or not I can "afford" to buy another rental with this strategy going on the answer is yes.

@Felicia Vinces it sounds like you missed our Year End Live show and Podcast of "Real Estate Notes Show' where 2 15 year experience note investors break down what makes a note valuable.  

If you are doing a live-in flip why not use that equity for a down payment with a refi or HELOC?

Quote from @Sebastian Bennett: I've been thinking about getting a real estate license.