Robert,

At what point is a flip safe to you? 2 days, 2 weeks, 2 months?  There is nothing inherently evil or tricky in a 1 day flip that isn't there in a 1 year flip.  What does it matter if teh B buyer gets a mortgage for his buy and then resells or gets a transactional loan?  As I said, this is disclosed to the C lender.

I think the answer to me original question is that no one here has experience...and some people have irrational fears when they haven't done something before.

Thanks for your time.