The occupancy requirement would be to qualify for the loan initially, not a stipulation for any set period of time.  

YES, assumption not sub toCredit and DTI is fineissue will be I own a primary residence also though that is 80 miles away from this house and this new house is 5-10 minutes away from my work, so i am  not sure if i can qualify b/c fo 100 mile rule 

Investment Info:Single-family residence buy & hold investment.

Would I need to plan to live in the property for one year as my primary residence to qualify for such a mortgage? 

Personally I wouldn't be putting my personal residence on the line (assuming thats where the HELOC money is coming from) to do a deal with a partner.

I want to also add that I'm assuming I do not qualify as a real estate professional (50%+ of work on real estate and 750+ hours/year) and that the rentals are long term.

I have found that it is much more beneficial to hire a CPA that is highly qualified in real estate rather than one locally. 

If they don't, they should forfeit the holding fee and the PM puts it back on the market for the next qualified renter. 

@Angelica Valde let's assume for a moment that the loan won't care if you re-zone it after closing (which is the most likely scenario)...how would you qualify for the loan when you refinanced?  

The house is furnished hoping to capture residents at the local hospitals to come in for a couple years.