Accept their decision. 

I'll look into getting a DBA right away.So after the DBA (ABC Management for example), when I am creating a bank account to manage the funds for the property I can accept checks written out to ABC Management even without a corporation or LLC linked to the DBA?

However, if he does not accept, I think I can rent for $1600, however I would have to convert into an apartment layout, bathroom, kitchen, etc.

Hey Mark,I would speak with your insurance agent as they should tell you the requirements - fencing around the pool, gate with a locking mechanism, etc.I personally own a rental with a pool and the insurance agent walked my rental to ensure it was acceptable. 

I'm military and also lived exclusively in those exact areas for 7-8 yrs.

Still, if there's no exit but I can live in the property that would be acceptable too.

You need a lot of properties to target to find both 1) property that meets your criteria and 2) motivated seller willing to accept your offer

To qualify for ANY tax exclusion under IRC section 121, the taxpayer must convert to principal residence use hand hold for an additional three years (so the holding period is no shorter than five years).

You're not likely to get a lot of replies here because it really doesn't matter.You need a bank account that can send and accept payments.

Will banks accept that money from a HELOC as a down payment?