When using the Fannie/Freddie/Federal Home Loan Bank second home occupancy loan and you transfer title within the first year to an LLC that the borrower is majority owner of it will not trigger the due on sale clause as long as you can attest that it will continue to be a second home.  

Code enforcement in our area will settle those for 10 cents on the dollar if you bring the unit back into compliance - so it would be a $10,000 instead of $100,000 or what have you.Hope some of it helps!

@Ryan Donohue Yeah, I guess I'm a little surprised that so many folks are triggered on here about the idea of bringing in $30k/month.

Key to your approach, as you seem to already understand, is that it requires elevated levels of planning and due diligence, but with this approach, it can be a profitable strategy.As you are in the process of narrowing down locations, start engaging with local experts to best understand market dynamics and compliance requirements with local laws.  

It requires revision of the stated principal of the loan, triggering specific rules known as OID - original issue discount.

They all said the their 2nd home loans, without exception, trigger a due on sale clause if the property is moved to an LLC.

Pull the trigger :)

You need to talk with a lender about your particular scenario before pulling the trigger.

We always operated within compliance in every other way, always let sellers choose, always disclosed to buyers, so literally the only change is now we can't let people just parooz a property we must have documentation that there was no other agreement because who knows what they could sue for 6 months later after the fact on what they think they "shoulda" had happen. 

Consult a Professional: Given the complexity and variability of these regulations, it is advisable to consult with a real estate attorney or a professional specializing in mortgage notes to ensure compliance with all applicable laws.For detailed and accurate information, please contact your state’s regulatory authority and seek professional advice.