There is no required holding period in the code, regulations or rulings other than you be able to demonstrate that you did in fact have the intent to hold for rental, investment or business use. 

This alone will cost $20k and yet we dont know i FHA regulation will be fine with the room as is since the doorway is actually much higher than the storage space entry (crossover).

I have experience with flipping but I plan on almost a strict buy and hold philosophy.

I would definitely consult an Elder Law Attorney to determine what the rules and regulations are for the state your mother will be living.Another recommendation is to have your mother live in a home she owns or rents with full time live in caregivers.

The local state agency that regulates financial institutions will be interested if there is clear "bait and switch" and other weird stuff going on.  

Check your state regulations and see what it takes to set one up.

If this is a corporation, the rules are more strict.

Strictly speaking, this is no different that any other pre-foreclosure deal, just that I (and my business partner, in this case) are the bank.

I know one thing there is probably not a jury, without very strict judicial instructions, that would convict them.

Are all the laws and regulations on the test?