Don't miss your chance while it is here.  

If you wait to long, you might have missed a small window to salvage the project.Here are some red flags for bad contractors courtesy of the Asset Based Lending Blog (abl1.net)They don’t want to sign an independent contractor agreement.They resist getting specific with milestones and deadlines.They resist giving you referrals or allowing you to visit a current work site.They may hedge on pricing and estimates.

The other thing you're missing that is different from a typical BRRR is you don't have any provision for rehab so you would have to be getting a property at such a discount that you don't even need to do any work to have a much higher value (i.e. the distress would have to be non-property related such that you could purchase for say $100K and sell tomorrow for $150K).

@Jared Rine makes a good point and the other suggestions missed this detail.

I am more concerned with building a relationship but of course don't want to miss out on a %point on a $350K+ loan because of that. 

Do we take our money and run or am I missing the bigger picture here?

Don't miss your opportunity!

Some agents do this yes because they want to make sure that the client does not use another realtor and they miss out on the commission.

My question is if I should move back in (the upstairs unit is opening soon) to be able to get a residential rate as I am unsure what the rate would be as a loan for an investment property.Still very new to all of this and apologies for missing any obvious answers here.  

You will miss your opportunity that way and you would end up moving too slowly.