If the loan belongs to neither, then it could be the investor or the service agreeement has restrictions upon selling to an investor who intends to flip.I REALLY doubt it is anything personal becuase these servicer's are in the business to make money and emotions do not play a major role in the decision process.Before you go any further, investigate who the investor is.

However, they can "help" by simply getting out of the way with all their restrictions.

If so, did they have an addendum stipulating a deed restriction?

The second is not a home equity loan it was a 80% / 20% loan that we got to purchase the house in 2006 at the height of the market.

Sounds almost like a restriction that franchises have.

Talk about the height of hypocrisy!

Are there restrictions on what type of retail can go in there??

If not, have you seen the movie "Pacific Heights"?

I now see that you want to put your personal residence in an LLC so you personally do not exceed the 10% ownership threshhold, and you want to use the 203k loan to acquire and renovate a unit that you will put in to service as a rental.Everything I have ever read about the HUD 203k loan program tells me that it is restricted to owner occupant homeowners.

The only restriction will be when the seller of the REO puts a deed restriction on the property that restricts your ability to do this.