Here is the exact language from the statute: "(b) Every provision in a written instrument entered into relating to real property which purports to forbid or restrict the conveyance, encumbrance, leasing, or mortgaging of the real property for use or occupancy as a family day care home for children, is void and every restriction or prohibition in any such written instrument as to the use or occupancy of the property as a family day care home for children is void."

This means that your friend would seller-finance the property to you subject to the existing mortgage which would remain in his name and he'd continue to pay (often through escrow).Lots of caveats with wraps including the "due on sale" clause, so make sure you know what you're doing, but it is an option allowing you to get into the property and refi it based on appraisal (6 mo -1 year) or when the LTV reaches 70% or whatever banks are offering at that time.Even with a relatively small equity position, to be able to get into an investment property for closing costs, and if your friend would extend this instrument for 5-10+ years, it could be a really nice deal.Good luck!

4155.1 4.B.2.b FHA Requirement for Establishing Owner Occupancy At least one borrower must occupy the property and sign the security instrument and the mortgage note in order for the property to be considered owner-occupied.

It has been so instrumental in our investing journey, and in my growth as a real estate agent.

Got my instrument rating back in July.

This site, as well as my local BP community, has an instrumental role in my journey as an investor and my growth as a real estate agent. 

"Consideration" does not include amounts imputed as a down payment or fee to the distressed home purchaser or a person acting in participation with the distressed home purchaser;(3) Enter into repurchase or lease terms as part of the distressed home conveyance that are unfair or commercially unreasonable, or engage in any other unfair or deceptive acts or practices;(4) Represent, directly or indirectly, that (a) the distressed home purchaser is acting as an advisor or consultant, (b) the distressed home purchaser is acting on behalf of or in the interests of the distressed homeowner, or (c) the distressed home purchaser is assisting the distressed homeowner to save the distressed home, buy time, or use other substantially similar language;(5) Misrepresent the distressed home purchaser's status as to licensure or certification;(6) Perform any of the following until after the time during which the distressed homeowner may cancel the transaction has expired:(a) Accept from any distressed homeowner an execution of, or induce any distressed homeowner to execute, any instrument of conveyance of any interest in the distressed home;(b) Record with the county auditor any document, including any instrument of conveyance, signed by the distressed homeowner; or(c) Transfer or encumber or purport to transfer or encumber any interest in the distressed home;(7) Fail to reconvey title to the distressed home when the terms of the distressed home conveyance contract have been fulfilled;(8) Enter into a distressed home conveyance where any party to the transaction is represented by a power of attorney;(9) Fail to extinguish or assume all liens encumbering the distressed home immediately following the conveyance of the distressed home;(10) Fail to close a distressed home conveyance in person before an independent third party who is authorized to conduct real estate closings within the state.

Default triggers the Mortgagee's capabilities to act on the remedies provided in the note and security instrument.

DST's are fee ridden instruments.  

Look up the instrument and read it.