Your options are many and you should play with all of them so you can become educated.

You state the value of comps in similar condition which is good for buying but not for selling a revamped house.Assuming you have $41K to play with (the difference between purchase and avg of comps) you will find that can be burnt through very quickly.

I know of many people that have done this in connection with rehabbing properties and so long as you play by the rules of the lenders, you will be able to excellerate the growth of your portfolio.You come out better in the long run if you dont refinance and just keep the original FHA loan in place at the low rates and just live there the prescribed 1 year then go get a new 1-4 with a new FHA loan as a primary.

I'll play around with it a bit more.Brandon i'm relieved to know that we're the same age.

Playing on despite people trying to make a living with limited resources and putting them in a position of using up their money for materials and promises, not to mention the extended living expenses, on strategies that may or may not work in their area is lower than low.

Fourth I do not play in that space or have the network there so I tell them of others who do that type of thing.As soon as you try to become all things to all people in the sake of making a buck you lose focus and traction of what you are specifically trying to do.

Tell the lender that and listen to them laugh.There's playing devil's advocate, then there's this quote....

It does make sense, especially if appraisal issues come into play like you said.

I am studying business finance and I play intercollegiate baseball (pitcher).

@Eric Liu & @Brent WatsonWhere the Federal rules come into play is for Section 8 housing governed y HUD rules and Fair Housing Authority complaints.Otherwise the FBI is not coming to your house and counting bodies, unless you're like the house in Houston this week where there were 100 illegal aliens in one 3 bedroom house.