Under certain situations ("special circumstances") you can get around the 1-year rule, but you must have had the intention of living there for 1-year when the property was purchased.Unless it's clear that you have a special circumstance where you have to move after 90 days, I would recommend speaking with a good real estate attorney before deciding to sell.All that said, when you sell, the proceeds from the sale are generally used to pay off the loan -- if the sale proceeds don't cover the full loan amount, you'll need to provide the difference out-of-pocket.

Many developers in Houston deed restrict their developments to prohibit certain uses which could include MHs.

There may have been circumstances that you did not know of.

In development cycles there is a under supply,sweet spot,and OVER supply.A certain asset class can be over built and it is often times a race to market on who wins.If your project takes to long to complete and the market gets saturated by that time then you will have to reduce your anticipated rent rates and cash flow projections to bring in new tenants or you will have to spend more on amenities to justify them paying a premium price.Either way it will cost you more money.

Given my circumstances, what business structure(s) do you recommend?

The reason you are getting what seems to be a lot of misinformation is that this is an extremely complicated subject and the advice you receive depends on a number of circumstances that are unique to you and what you are trying to do.

There are so many problems that can develop that you are not prepared for.

Now, I have borrowed under similar circumstances (9%rate, 12month interest only purchase & rehab, 3points front 1point on back) But it was for different properties that I got at a great deal that I was able to retail.

Why not wait a year and see what develops?

Agents, developers, fix and flippers, wholesalers, bird dogs, etc., all get paid for doing transactions.