However, with the financing options in this time period FHA 3% down to mortgage a property I feel is a better scenario.

Unfortunately, there would be no way for them to get permit for addition or pool with that in place, so they chose another property rather than tracking down owner or dealing with adverse possession in 1.5 years when it meets the state time period. 

Beyond that a lot of towns do periodic revaluations of properties in their jurisdiction.

@Lisa Kiu Do you even have any guarantee they'd pay May's rent now?

I intend to do a couple acquisitions in a short time period and I need a good chunk of my cash from the initial acquisition to go into the second, so to me the fees associated with multiple refis is just a cost of doing business. 

However these loans are designed for investors and they allow you to finance in the name of the LLC with a personal guarantee.

@Maya V. you probably should talk to an attorney about this, but I think the situation is a bit different if you buy a property and want to move it (an OMI, and this is not what you are talking about) and you just want to move away for a couple years and come back. there also is a court case right now - a couple that is in the military (one of them is) and moved away for a year, then had to pay the displacement fees to their tenants ($5K-12K or so, I think) - but apparently there are ways to get around this payment if you draft the lease a certain way (again, talk to an attorney) I have found that with other rules in Oakland, if you move in as an owner, you have to stay a certain period of time (or offer the unit at the old price to the old tenants)

Walk a mile in their shoes.....This business does 2 things after a long period of time. 

Use a stainless 'slinky' style flue liner--lifetime guarantee. 

They have the best training period.