Otherwise, its not the end of the world to just declare the money and the investor is effectively gifting you the funds for the down payment.You could/should be able "get around" this with a commercial loan since they don't have to follow the regulations/stipulations of a conforming loan to my understanding.Good luck.

The fact the tenant didn't report it earlier is a big issue if your lease stipulates that tenant is to report issues immediately/timely fashion. 

Are there any stipulations on how long I should stay in the primary?

If you pay cash, you can do your cash-out refi immediately after rehab -- but with one important stipulation: The loan can't exceed the purchase price.

However, you may have some sort of stipulation regarding mailing/post mark dates though.For example.

One thing to be careful with when attempting to get financing in addition to what the hard money lender provides is that the hard money lender doesn't have any stipulations that would prevent you from being able to do this.

@Matthew Tregoning”Most VA home loan agreements stipulate that you occupy the house for at least 12 months.

This is helpful - I believe the 90-month stipulation is my responsibility, so I agree that Option C is the best option for me.

We created an llc for that property where the %s are stipulated and I do the management since that’s my area of expertise.

Unless otherwise stipulated, those rents should go to the seller.