So even something like that I was able to save a lot quicker because I had no more rent or mortgage payment because it was covered.

It was awful and I had no pension.

I had no idea by how much when I got into it, but the power of it will just compound over the years.  

Honestly had no idea what to expect and was a little nervous at first, but after a year we are proud to call Birmingham home. 

I had no idea what I was doing and it was the greatest feeling in the world!

However, the banks have had no incentive to enforce that over the past decade as long as the loan was performing.

Be careful moving into the 1031 house it takes about two years to break the curse.We had a couple of rentals in Ca for 30 years that never made money as rentals; but they were paid for and we had no intent to sell.

I had no idea these things were even out there.I am financially free and I thank God everyday for it, but now I want to be a landlord that really takes care of my tenants and can give them an incredible place to live!

I had no idea they were storying things up there (she's lived in the house 10 years before I bought it). 

uhh yes this is totally occupancy fraud, and your LO should know better than to be advising you to go about it this way. he's right that people's lives change and situations come up, but to guide you in this direction seems to be negligent behavior at best, fraudulent at worst. consider the implications if the lender found out you had no intention of moving in, but knowingly took out an owner-occ loan.... the note could become due and payable. like, all of it. immediately. worth the risk for an additional 5% cash-out?