Cons- depending on your personal financials, qualifying might be more challenging and the loan might not amortize over 30-years.Another alternative would be a business-purpose rehab loan (fix and flip/fix to rent).

A property qualifies as Homestead for this exemption if an eligible owner files a Principal Residence Exemption (PRE): https://www.michigan.gov/taxes/0,4676,7-238-43535_43539-210891--,00.html#:~:text=Section%20211.7cc%20and%20211.7,purposes%20up%20to%2018%20mills.Many investors have gotten an ugly surprise when they bought a property that was a primary residence of the seller for the last 20 years.

I cannot do loans in NY in personal names, but I can do Business Purpose loans (DSCR for instance if closing in a business name).

If you want an Airbnb there are a lot of great markets that you can buy a property without the renovations specifically for that purpose. 

Yes, my mom would pay rent; or rather, I would be paying it but for purposes of the analysis I'm just assuming a regular tenant.

Finding a condo complex that is STR-friendly can lead to a better investment.

If you wait 2 more years there and it appreciates more, you may have enough to sell it, get the bigger house, and have some leftover to invest into a purposeful investment.

And whoever makes the payments on the mortgage could stop, resulting in a notice of default, leading to foreclosure…making this a risky situation for the wife to be in.  

We have a lot to be excited about in our market! The gift that keeps on giving! 

That tell you that if you are not getting any leads... to..