Can you refinance the mortgage with the seller into a 30 year conventional mortgage through Fannie Mae or Freddie Mac while the remaining mortgage balance is $105k after 1 year of purchasing the property and the property appreciates 5% resulting in the value of the property being worth $126k) to an interest rate lower than 7% that was proposed with the seller?

I am assuming Canadians are not using Fannie Mae for funding...

I know I read on Fannie Mae's HomePath for example that they require you to be a primary resident yourself for a period of time, and then you'd basically be free to do with it what you wished.

Under my understanding - unless we are talking about a portfolio loan - the 2 properties under 1 mortgage will still fall under 2 mortgaged properties under Fannie Mae/Freddie Mac guidelines.It will also likely be more administratively burdensome with likely more fees to do it than to just get a separate mortgage.

Or possibly Fannie Mae homeStyle (15%) down if it needs any work.

What are the reserve requirements for a conventional loan with Fannie Mae? 

She said that this is a fannie mae/freddi mac guideline for conventional owner occupant loans and will be like this mostly everywhere.

According to the lender these are Fannie Mae requirements and there is no way around it.  

Since many flippers sell to buyers who will be getting FHA conforming mortgages, this affects them.Banks want to issue FHA conforming loans because this allows them to sell those loans to FANNIE MAE and FREDDIE MAC, government enterprises that buy mortgages.  

But I am not a lawyer and I have never slept in a Holiday Inn Express.I didnt form my LLC until my 3rd property.The best tax advantage in my opinion is depreciation.I believe the 4 house rule applies to conventional mortgages backed by Fannie Mae, its not a bank rule.