First off: Check your FNMA Real Estate Purchase Addendum, I think on page 7 or 8 for the deed restriction section. 99% of these have a clause saying you cannot sell the property for more than 120% of the amount your purchased it for until 90 days after closing.

Court dates and lawyer fees have already started to be imposed on the borrower.

The requirement wrt trusts seems to be little more than trustor, trustee and beneficiary must be the same natural person at the time of origination, leaving the door open to switch that all around post origination (read creative REI), if I'm reading it right.Of course, these are Fannie/Freddie guidelines, it's not to say originators that sell to Fannie/Freddie can't 'overlay' their own more restrictive guidelines.  

I have three section 8 tenants and I don't recall there being any restrictions as long as you can show you have the rights to rent the property, but it could be different in your state.

In fact, my current residence (townhouse) I purchased as HUD owner occ. with the intention of fixing then renting after the 1 year occupant restriction is lifted.

It's hard to say exactly how this money supply restriction will affect the market.

There may be laws that regulate or restrict what you are contemplating.You may also find it important to have a discussion with an attorney to properly structure the business to abide by all federal and state laws.

These "portfolio" mortgages don't need to meet Fanny/Freddy restrictions because they are NOT sold on the secondary market and kept in the lender's portfolio, hence the name.Third choice would be private lending/seller lending with neither the Fanny or portfolio restrictions.There is no limit to the number of mortgages that you can have... ask me how I know.

HELOC's in Texas are restricted to homestead properties only.

You might have misunderstood this with financing discussions where banks might restrict the amount of commercial loans they will allow you to have.