It is still a 2nd and subject to the performance on, and subsequent actions from the first lender.

the property was acquired during or subsequent to the most recent tax filing year, the lender must confirm the purchase date using the HUD-1 Settlement Statement or other documentation.

In great detail they will go over the rules pertaining to owner-occupied properties with respect to equity skimming, and how to avoid running into issues with them and subsequently the attorney general.And yes, it is a great opportunity to meet other real estate investors in your area.

For example, you may pay close to market for a home (ideally you would not) but if the subsequent housing expense (P&I, PMI, maintenance, insurance, taxes, etc) are below your current housing expenses then you can bank the difference and put it towards your next property.  

I subsequently called a real estate attorney, who didn't seem to know anything about this rule.

So increasingly, the answer for WHOLESALERS is "yes" - get your License, which also means always disclosing that status to every Seller and Buyer being dealt with.But if you are buying the Property AND taking Title, no License will be required by you to put that property up for rent, or to subsequently sell it.

In the majority of cases, if the foreclosure is in the first lien position then the subsequent loans secured by the property become unenforceable from a collection standpoint.

To recap,Seller sells property for $550,00, down payment received = $110,000Seller carries note on $440,000 8% 30 years receives monthly payment from Buyer = $3229Seller's owes to Bank = $385,000 at 5% 30 years, pays bank monthly = $2067Seller originally bought property for $350,000Q1. what is capital gains to be reported on the first year of saleQ2. what is the capital gains in subsequent yearsQ3. what is the total ROI on the transaction?

Re other comments above, I too have found that when I start to think of signing a lease as helping someone out my guard goes down and subsequently my troubles rise.

Accept the fact that your first new build won't be as efficient as your subsequent ones. :)