If you are still the owner occupant at the time when you refinance, then you can easily refinance with 20% equity (I assume that you meant 20% equity and not 80%).

LOL yes that's what I meant purchase not refinance.

I meant evicting the owner.So send a notice - and if they dont evict - file judgment of possession?

I always thought sub-to meant that you are taking over the original loan, but that is only one form of a deal being subject to underlying financing.

@Wayne Brooks  what i meant was low down payment. 

If it meant being able to make more cash flow by renting another room, then yes I'd live in a shed.

When I have used this strategy I did so under my LLC which meant that it was a commercial loan.

Yeah - I might have misquoted, they might have meant 7,500 that need to come down because they are uninhabitable. 

For example, I can work from anywhere and have customers in Texas, so in theory I could (and would) spend half my time there if it meant the ability to start things in real estate.

The law is meant to protect the investor and renters (the exception is for the owners is because it isn't right for a owner to not to be able to rent there own property and would result in many properties being empty for longer periods) As an owner setting up the dba is not circumventing anything so long as you have an interest in the property.