If you doubt this, test it for yourself - go to a subdivision that you know is higher end and see who's sitting on porch stoops or holding up street lamps.

Intent goes a long way in lending and if you truly intended to move in and there were unforeseen circumstances or anything beyond your control, it should pass the smell test and allow you to break the rule for the time being until the property is livable. 

A good quality structure built by a Master Builder will stand the test of time, vs. a scrap of paper, or an entry in a data base, based on how much the next person will pay for it.You can add value to structure and collect rents even in the bad times.Where people run into trouble is when they borrow too heavily, and the bank takes the "Still Valuable" asset from them.With a stock, it's a roulette wheel gamble, as to how much it will be worth at any given time. 

I guess this will be a test case before the community.

For example, if there is a bunch of demand for apartments and a lack of supply, you might want to build an apartment building, etc.If you interested in testing you real estate development knowledge, this quiz is kind of fun:https://www.developbuildings.c...

Infilling communities is profitable but is also the slowest, capital intense, and risky way to add value. 

@Audrey Spina Long term rentals should definitely be least time intensive.

My uncle is a Real Estate Attorney and he gets confused about some of the laws , They contradict themselves and haven't been tested yet !

A great way to test your tolerance for this without the 350k obligation.There is value in owning rental homes, and I own many. 

I think this is a good time to talk to others that have past that could give me some test taking tips.