I'm not arguing the legality of it. I'm just stating from my experience. I've done it twice, never got an occupancy permit on either one and sold both houses with no issues. If you are just working on it on weekends and you have a working septic system with bathroom facilities I highly doubt they would throw you out unless you had neighbors complaining.
The log cabin across the street from me in Meredith was built about 10 years ago and I was told by my neighbors that he lived in it while he built it. They use to offer him up a room and shower but he refused prefering to camp out in his log home.
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