“Federal judgment”: Judgment rendered in federal court and is in favor of the United States of America or one of its agencies, departments, or instrumentalities.

We have a musical family and a music room was done that way to keep momma happy.

I see it all the time in my other profession, music.

If he has a security instrument on the property, you can refinance him out once you get tenants in place and the property has rental income.

https://servicing-guide.fannie...This topic contains information on allowable exemptions due to the type of transfer.Unless the previous borrower requests a release of liability, the servicer must process the following exempt transactions without reviewing or approving the terms of the transfer:A transfer of the property (or, if the borrower is an inter vivos revocable trust, a transfer of a beneficial interest in the trust) toNotes: For all such transfers affecting mortgage loans purchased or securitized by Fannie Mae on or after June 1, 2016, the transferee is not required to occupy the property. a limited liability company (LLC), provided that:the mortgage loan was purchased or securitized by Fannie Mae on or after June 1, 2016, andthe LLC is controlled by the original borrower or the original borrower owns a majority interest in the LLC, and if the transfer results in a permitted change of occupancy type to an investment property, such change does not violate the security instrument (for example, the 12 month occupancy requirement for a principal residence).The servicer must notify the borrower that a property transferred to an LLC must be transferred back to a natural person prior to any subsequent refinance application in order to meet Fannie Mae’s Selling Guide underwriting requirements.The way I read it, you can transfer to your LLC. 

I get that appreciation makes way more wealth than cash flow, but what happens when the music stops and appreciation stops or even reverses?

Of course you can rent it to store music equipment for a band or extra ultra rare art pieces. 

With a youthful and diverse population, the music city is home to some of the most popular Fortune 500 companies (e.g.

I have no rhythm, no internal beat, no musical ability at all.

For FHA loans, at least one borrower must occupy the property and sign the security instrument and the note in order for the property to be considered owner-occupied.