I looked into assuming his loan because it's an FHA, but you have to be an owner-occupant for that.

The lease states the occupants allowed to live in the property but I have no doubt they will end up violating that provision.

But to give them credit, I think their posts would be more creative and comprehensive.Don't circumvent an owner occupant clause.

The key when they claim occupancy and income is HOW LONG have they owned and stabilized the property??

The last thing you want as an inexperienced investor is to feel forced to go with a contractor you're not comfortable with.I'm a big advocate of using conventional or FHA owner-occupant loans on the first deal, especially if it is a rental.  

If you compare FHA with Conv for a SFR, FHA allows for a non occuping borrower, conventional doesn't (this is big).

This was probably a college roommate rental up until now, he could very well be done with spotty occupation and student hygiene.

The owner occupant buyer doesn't have a chance unless they are buying in the market over $250K and under $75K, or in really bad areas.

I would say it is not common for hard money lenders to loan to owner-occupants, if that's what you're asking.

I actually have one crazy village that requires me to get an occupancy permit every time the renter changes.