Will the heirs be classified as squatters or is this trespassing.

That is in the range that I classify in the property specific point on if it is cash flow positive.  

@Eric MillerThe IRS does not care about the loan product that you have.The IRS just wants you to properly classify mortgage interest as a Personal Residence mortgage interest (Schedule A) vs Rental Property Mortgage interest(Schedule E).Best of luck! 

If it is classified as flood damage then he would have needed tenant flood insurance which almost no one has.

For instance on my Canadian property, if I were to sell, I would only pay capital gains on the appreciation after the point I classified the property as an investment as opposed to being a primary. 

For financing I assume we need to have 20-25% ltv and classify as an investment property?

Does this classify for emergency eviction since I need to move in?

@Michael A Silva-Sampaio your lender should be able to confirm for sure, but it really just matters where you classify as your primary residence on paper (i.e. tax returns and USPS address).

I am hoping that I can use a 10 percent down loan for this and classify it as a vacation home.

@Oscar Sanchez whenever I think about a purchase like that my mind floats back to Rich Dad Poor Dad and try to classify it as an asset or liability.