RESOLVE this issue NOW and make a clean break. 

I doubt if you'll have any issue with your hold period since it is all about your intent anyway.

Since you’re considering converting the upper unit into a short-term rental, you may also want to implement strict rules around smoking or strong odors in your house rules to avoid future issues.

I know conventional lending could become an issue depending on the condition of the property.

One issue that I'm noticing is the range of reported insurance costs.

So I wouldn't recommend them unless time isn't an issue for you and you don't mind waiting a few days for a response.  

So far I've owned the place for 4 months and have not had any issues with my tenant yet.Am I Happy With My Purchase?

The brother was fed up and needed to sell, but there was a significant issue.

Quote from @Victor Correa: It’s Mobile Home with Land I’m taking over both land payment and Mobile Home payment and right as of now is considered personal property but you just open up my eyes and I’m thinking what we can do is convert into real property and then transfer the land and that way it’s attached to the land Your thoughts?

It's definitely one of those issues that is very specific, and would need to be worked out with Planning.