It's fraud, you know it's fraud, even the legit prescriptions are more likely to coddle than cure, but it's the law and we have to abide by it.

The 3 categories are:1: Second homes - Places people use for dwellings part of the year and leave empty the rest of the year, or maybe let friends and family use it for free.2: Investment properties - Rentals, Air bnb, you use it for 3 weeks and rent it the rest of the time...3: People trying to commit occupancy fraud by saying an investment property is a "second home" because they know it gives them a better rate.  

In the Real Estate Investing world we have a term for this very strategy, mortgage fraud. 

I am going to give a quick run-down of my situation to see if what I want to do would be considered mortgage fraud or finessing the systemI bought property 1 in 2019 and lived in it for 1.5yrs.

I'd just own the house before doing any work.this has fraud written all over it.. 

In their mind you learn the rest when they take over the deal from you, and you learn as a minority partner.One thing that I've also noticed is that both of these types of tend to go out of business quickly, either because they get thrown in jail for fraud or they don't survive a recession simply because they aren't adding value.  

I know this is true because I bought 2 identical properties for $50k in 2000.   

There is a lot of rental application fraud happening currently.

If the properties were not identical, there could be other explanations or things to consider before buying. 

Identical duplexes on the same block, purchased 6 months apart.