I know HUD requires you to have no option periods.

(c) A landlord who violates this section is liable to the tenant for an amount equal to the sum of $100, three times the amount of the late fee charged in violation of this section, and the tenant's reasonable attorney's feesSo according to this I would think I am ok as long as I leave a 1 day grace period?

With HUD it depends on many things when purchasing.If for instance the purchase was part of the good teacher,police firefighter etc. with the discount you have to live there so many years period or you will have to repay some money.Also if your buyer bid during the owner occupant only period to get the property and will never move in that is fraudulent.Investors frequently use to do this to not wait until the investor period came.It is a crime to do this now.Some would also say they were living there to get an owner occupant loan with a lower rate.This is committing mortgage fraud.Many do things to ride the line everyday and some get burned and others do not.I wouldn't want to be on the governments radar though.So without knowing the specifics of how the transaction went down it's hard to say.If the title company says 2 years and they do a lot of HUD then I might take that at face value.I have seen HUD go out to properties before,check where mail is sent to for taxes,etc. after they were bought.

That would be your most likely source of funding for a fixer.Also, be very aware of any redemption periods that might apply (varies by state laws); if there is some redemption period, you might end up having to hold through the entire redemption period before you can get anybody to be willing to lend.

On the other side, why don't you negotiate a contract with the seller for as low a price as he'll go for with a 10% down payment and 30-60 day option period.

Right after closing he was told not only could he not resell within 60 days but he could also not refinance during that period.

The time period is extended as you continue to buy and sell properties in this group, until you sell the last one.

I have enough $ coming in to cover the $500/mo going to the seller should there be any periods of vacancy as well.

I take pride in my properties...I want them to look nice, be safe and efficient which translates into good tenants and less headaches.

Getting the utilities in-line was a challenge, but we did a lot of work on tightening the place up, installing high-efficiency HVACs (one per floor), etc.