If you were caught moving before the year is up, there could potentially be life-changing penalties as this is considered mortgage fraud by the FBI with penalties punishable by up to 30 years in federal prison or $1,000,000 fine, or both.  

Lastly, you should probably look at E&O coverage for the "board of trustees" too - this protects you from being sued personally (unless you knowingly commit fraud or another type of crime).

I would do more due diligence by checking backgrounds more thoroughly like their criminal, identity and credit.Always get it in writing.

I am a Fraud Examiner by trade.

Build more third party Api to automate the due diligence process much as possible.Value of marketplace should lie in the capability to fight fraud to keep transparency and fairness.

Assuming you have identical properties with identical vacancies in identical neighborhoods the one with the higher cap rate is the better deal.

See if he will stay on after the sale helping you to manage remember when he sells he looses his identity. 

This is mortgage fraud, it is a felony, and you do not want to deal with that sort of thing.If you can't make it work owner-occupying it, then find a property you can make work, or use another type of loan.I believe the owner-occupied period is 12 months, meaning you must live there the first 12 months you own it.

Each one has been nearly identical, 3 bed 2 bath on each side 2600 sq ft total.

Can anyone see where I may be leaving myself exposed to loss or fraud?