So, if you are concerned about the law, Idaho Code §74-120, then I highly recommend checking to see whether there has ever been anyone prosecuted for violating that law (doubtful).

They will prosecute you and the courts have already held that "entrapment" is not an allowable defense.Once you have that all figured out, it's time to move forward.I have long been a fan of Plymouth and Bristol counties as the places where an MFR buy can still make sense. 

There are plenty of cases of prosecuted loan fraud based on this very issue.

The actions you described in "Getting around the rules" and "finding loopholes" could be prosecutable at most and are  unethical at least.

Turns out the son is a juvenile-my wife got a message on her phone from the County Prosecuters office- juvenile division.

Just a waste of time and energy.Kind of like getting pulled over for a DUI and asking the prosecuting attorney to represent you.

Under Wisconsin Fair Housing laws, those receiving public assistance are a protected class, meaning that if you were to say "no Section 8", you could be fined or prosecuted.  

its not legal as most do it in all 50 states just not enforced or prosecuted.. you can close on the home then advertise it for sure.. cant advertise homes you don't own and the equitable interest theory does not stand when you sole business purpose is to emulate real estate broker activities..  

Once he was caught he made restitution, sold his home and moved away to avoid prosecution.

I would also point out civil asset forfeiture is more likely because it really does pay for itself.You might also want to follow the many cases where people are challenging prosecution by claiming equal protection violations.