That and the fact the intent to resell weren't disclosed to either the seller or the seller's lender.

I’ve never considered myself to be fearful of taking chances, even financial ones, but the thought of buying, flipping and reselling a house while still paying a mortgage on my primary residence, working a full time job, maintaining a relationship and still having a meager social life scared me to death…especially at 26.I don’t bring this up to brag but to show that no matter what the odds and depending on how willing you are to take that calculated risk, it can be done.Back in December my agent brought me to a house about 20 minutes away from my hometown in New Jersey.

Griffin,  as others mentioned, my clients who are house hacking are doing it to lower their housing costs while building equity and increasing appreciation through doing improvements to the property before re-selling it and moving to the next opportunity. 

Maybe to live there or maybe to make a profit from reselling so you can buy a different home.Have you made contact with the seller?

We also make sure to use an addendum that discloses important aspects of the short sale -- such as homeowner will not receive any cash proceeds, bank has to approve short sale and of course our intentions of reselling for a profit.

Second is if they do allow rentals you can get a lot of NOO units and the project becomes nonwarrantable and hard to resell.

When one is acquiring, perhaps rehabbing, and reselling property, this is a dealer activity* , not the type of passive investment income for which there are exceptions to UBIT as you note.* not to be confused with "dealer status", specific to real estate, which is an entirely different thing for after-tax investors The plan is buying and selling, and the property is the inventory of the sales business.  

FCI exchange is a good place to look at notes for sale to get a feel... and I guess you could just do the old wholesaler trick find notes on FCI act like your a for real note buyer get them tied up then try to resell them for your little finders fee's..

I can take the money and buy a home in the area for around $50k, put around $30k into it and resell it for $120-$130k while we live in it, allowing me to make more money out of the deal.

The "We buy houses people" have a formula which is .65 times ARV minus repairs.They have to buy it, pay the closing costs on the purchase, paid holding costs while they are doing the work reselling it, pay the agent to resell it, and pay a new set a closing costs.And they need to profit.So Mr.