It's just coming from the seller instead of a traditional lender  As long as you purchase at least as much as you sell and as long as you use all of the cash from the sale as the down payment then you would have not generated any boot.

If this is the case are you allowed to sell the property any time you would like and/or buy the property any time you like In your name through s traditional purchase/closing ?

The idea then would be to do a rate and term refiance into a traditional loan with a bank.

But you might struggle finding a traditional lender at that price.

Submitting an offer on a HUD property is not like a traditional offer.

Granted I'd love to lock in a rate with a traditional mortgage but I would have had to wait six months to do so.  

This only works if you can accept a very rustic look, but I always thought that cabin grade is cheap (but requires extra labor for install and cutting tongues off) and to replace boards for damage would be easier than traditional wood.Just a thought..

But essentially, pretty much every traditional scam you can think of starts with a greedy mark who wants discounts and freebies.In reading through this list, it's clear that the vast majorities of these require a greedy mark.  

So my plan is to get to the 20-30k mark and then invest again for a 4th mortgage from a traditional lender. 

"I help sellers who can't sell with traditional loans find investors who don't need to use conventional loans."