So your potential buyer can totally qualify for a flipped home but their particular lender simply does not generate them due to internal policy.

However, it appears that you can claim that you owned and lived in the property as your primary residence for at least a total of 24 months out of the last 60 months, so you should qualify for a tax-free exclusion for up to $500,000 (as a married couple) under Section 121 of the Internal Revenue Code ("121 Exclusion").  

I don't see how/why Dodd Frank would preclude Tenants becoming Owner-Occupiers in this fashion, but is fine with Investors buying that way?...

Lots of people crossing the border legally and illegally and tons of drug traffic down there as that house is about a football field away from the international border.

Indecision, doubt, and fear are the three big internal enemies of success.

Guys like Jay, Alex and myself were in this space long before it become a fashionable, wall-street investment and we are very familiar with what you re trying to do.  

As an international investor located in Australia I have only just been made aware of the situation.

Any advice contained in this post is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter that is contained in this document.

It has an internal battery backup.

But when you bought your first rental properties and rather its airbnb or annual renting, did you feel fully confident you were going to be able to have it booked or rented at least in a timely fashion?