Not sure what market you are in, but I would talk to some lenders about FHA options on a 2-4 unit property.

The fact that a company has stoped paying interest on a promissory note and is exercising an option stated in the note to convert the note to equity is not in and of itself indicative of any fraud.  

Hope is the industry gets some relief soon and I can revisit some options to further improve asset revenue through amenities and/or roll into a better rate a lower principle.

I've helped people with SBA loans to purchase real estate for a business, but for buying rental real estate, the DSCR loan is a much better option.

Have you spoken to an immigration lawyer about your options? 

On Facebook marketplace you have to call it an apartment since they don't have a commercial option.

Credit is a factor as bad credit may limit options, or may have the lender require you to put 10 or 20 years of taxes and insurance into escrow. 

What ever the Contractor proposes you should not take as the only option.

Seller was not willing to extend contract or accept creative financing options.

This means, on average, that this person is facing foreclosure or bankruptcy, and has no other reasonable options.