I am all for landlords creating some small hurdles for tenants to avoid the time wasters but that is to large of a hurdle.

Not to mention the possible complications of rehabbing in the winter.So do you try to avoid the winter months for flips?  

You really need to understand the value of the problem.In order to maintain low property taxes and avoid reassessment during the course of trust administration you'll need to obtain a "fiduciary mortgage" to the trust.If you take the property out of the trust, even temporarily to refinance, or to buy out the other beneficiaries, you'll trigger reassessment.Fiduciary mortgages will also limit you to borrow only about half the current value, less any existing liens and mortgages, if any.

Here are few tips on how to avoid this problem on your flips:1) Create a file folder for you flip (both electronically and in paper form), so you get and maintain the proper documents stated below.2)  Draft a summary general contractor (if you are the GC) plan or have your GC prepare a plan on what work will be done before you start it.3) Identify and create a list of all subcontractors that will be used.4)  Identify all materials that will be needed or used for your flip.5) Prepare all lien waivers for all subcontractor and materials either before the process starts (this is ambitious - but is a great idea)  or at the time of paying your subcontractors.  6) Lastly, get all lien waivers to your attorney prior to the actual closing.  

Youor lending operation may avoid a Banking Division cease and desist order but if someone turned you in you'd be setup for a bit of trouble.Just do 3 per year using a LMLO, qualify to 43%, full doc, LMLO is supposed to get a 1003 loan app, but some are lazy and make you do that including getting all the doc.  

To avoid investor competition, should I look more on HUD and Homepath properties since they give preference to owner occupants? 

This is how some people are able to avoid having the property go through probate upon the passing of the trust's beneficiary.

My Rule of Thumb is that Rules of Thumb are foolish and should be avoided at all costs. 

The only reason some gets paid under the table is to avoid paying taxes, and since you're going to be deducting these expenses from your taxes (or capitalizing depending on the project) it makes a great deal more sense to not pay "under the table".

payoff demands that you want to avoid, so the owner occupant nomadic flipper had better move into that place within 60 days of purchasing to avoid that!)