Residential conforming loans require the 1 yr occupation unless you get an "investment" conventional loan.Other than mortgage fraud issues, if you just "wake up" one morning before the 1yr is up, I don't think the 'power thats be" will know in it of itself. 

With phones and digital cameras, there's no reason why you can't document the condition of the home before and after every occupancy.

Guests steal things and they have a way of leaving filthy dishes, a filthy stove and sometimes it is difficult to put all the dishes, utensils and pans in the location you want them.Unlike conventional rentals, you income is not guaranteed, you have to pay management companies a super large portion of your booty because not only does a management company have to take care of your guests 24/7, they also have to deal with the cleaning services and destruction tenants leave behind them.You have to constantly juggle your calendar for tenants who want to move their move-in date forward, backwards and cancel.

Conventional financing through local Bank How did you add value to the deal?

My specialty is in investment property financing, from fix and flip up to large balance commercial financing but I also have experience in conventional owner-occupied residential deals as well. 

I'm still learning the technicalities of this, so forgive any errors in my summary.Essentially, everything has gone smoothly in our due diligence thus far and I'm told that our mortgage (conventional investment loan) is fully approved.

Conventional How did you add value to the deal?

Will I have to wait 6 months to refi to a conventional loan?

Conventional second home 10% down How did you add value to the deal?

The numbers I've ran show there are several units in my areas generating +$1k month in positive cash after paying all expenses (mortgage, ins, taxes, any utilities & 1mo vacancy/repairs, self managed) using anywhere between $45k-$55k down to achieve 20% on a 3% conventional loan.