As far as I know, it's still illegal under federal law to house a growing operation without proper licensing and the funding of one.

If so start reading up on landlord laws for your state.  

If you are in NC and are going to lend in NC you will definitely need to know some NC laws.

Act like plumbers electricians but get paid per day and are instructed what o do by the property owner.I spoke to a local today who has 100 units and I tried explaining that his handyman who he tells to do things and works 8 hours a day  5 days a week is his 'employee' and the landlord laughed told me i'm an idiot and said that sort of law would put me out of business or I'd just be a slumlord and not do repairs. 

I was wondering if it would be wise (or stupid) to purchase a home with little down (5% or 10%), live in it for 12 months (avoid mortgage fraud) and then rent it out while living in a cheap mother in law apartment. 

When people say they "bought a foreclosure" they could mean they won the bid at the auction, or they could have bought the house from the owner before it actually went to auction.Foreclosure sequence, timing and laws vary from state to state.Always get a title report and use escrow.

Kaufman Law, happy to put you in touch with my point of contact there.

Is there a problem preparing a quit claim deed to hold against default, or am I circumventing foreclosure laws by doing this?

It's a 3 bed/1.5 bath home, with an in law suite with it's own 1 bed 1 bath kitchen setup.

The tenants were hell and NYC has the strongest tenant laws, I wasn't making any money on those buildings because of turn-overs, evictions and new leases.