The example Fannie Mae gives in their exceptions list is:"The borrower is purchasing a second home and is personally obligated on his or her principal residence mortgage.

Once I was in, I wanted it finished so that I could get the rest of the money from the bank, but there was no pressure since any left over would just go to the principal if I couldn't get it finished.

@Derrick RI think having a license and solving problems for home sellers, showing them all their options, but "acting as a principal OR as an agent" is the way to go.You can list a thin equity pretty house deal for cash and make a commission.You can list a thin equity pretty house deal for terms like a lease w option or a lease purchase or a land contract and make a commission.You can act as a principal and assign a contract (lease option, lease purchase, sale and purchase, etc) for a fee.You can close and get on title and resell as a principal. 

I do call it equity when you pay full price, 100% fund it and over time the rental payments reduce the principal.

If not, you have the option to pay down your principal. 

Figure out what the principal, interest, insurance, maintenance, taxes, etc. would be on that property (worse case), subtract out what you pay for rent, and try to save at least that every month ... this will not only help build your personal finance skills, but will also simulate what your finances would look like after you purchase the property ... if you are late or short even 1 day or dollar or don't like how your life is during that simulation, then you won't like it after your purchase ... you'll need to lower the simulated expenses until you are happy with it ... from that you will know how expensive a property you personally can comfortably afford and save up a down payment for it.

And if nothing else, at least our principal would be paid down every month.Things We Are Happy AboutLocation, location, location:  the property is in a great location.  

However the drawback came full force when I went to apply for another loan and everything business I had showed up as a loss. 

At the end of 6 months, the principal amount will be $52,300.

The drawback to doing this to a non-investor is that Dodd Frank comes in and I am limited to the number I can do.