It's not technically correct, but close enough if you're doing it yourself. 

@Joshua Syska Sounds like you are on the right path!

I have had a positive experience so far and I am looking to continue down this path and grow my portfolio this year by having my second deal be a owner-occupied 2-4 unit home. 

I hope I'm in the correct category. 

@Quandra Adams - your lender is correct and somewhat incorrect at the same time.  203k's allow for any renovation related fees- such as the HUD consultants work write-up ($400-$1000), draw inspections (up to $350 per and max of 5), title bring downs (typically about $100 per), architect (if your using one), engineering (if applicable), etc are allowed to be financed into your renovation budget. 

Too many agents out there are"showing homes" without the correct ppwk being provided to the buyers, and this is unfortunate.

@Christine H.Assuming your numbers are correct, it's pretty much a deal breaker...

Wholesaling in OKC isn't illegal if you use the correct language in your contract "and/or assigns" on the buyer line. 

If I set up such an arrangement, I would still be at risk unless he was insured correct?

@Stephen Lee you are correct.