@Alex Shaughnessy Unfortunately, I don't know this company, nor do I have any PMC's to recommend in that area. 

Ive seen conflicting answers online and just want to know if Its legal for me to occupy the home down the life if life circumstances change and I need to while still renting out part of the house?

I also maintain cash in CDs that could be utilized in case of extreme circumstances.

unfortunately in the investment world you'll be more in the 25% range consistently 

“No one should be denied access to opportunity simply because they have experienced a medical emergency.”This statement is unfortunately laden with poor assumptions.

If you previously bought a primary using an FHA loan..there are some exceptions that you could obtain a new FHA loan, usually within 12 months of occupancy and some extenuating circumstances that could allow for sooner.

There are some other extenuating circumstances that allow one to use more than one FHA loan at a time:- Relocating to an area beyond reasonable commuting distance to your current residence or affordable housing is not available - Leaving a jointly owned property to buy a home, and co-owner (such as divorce) plans to remain in the home.

Unfortunately the numbers are tight because there is more competition of small units and even somewhat competing with hotels with a 2/2 as some hotels have suites. 

Unfortunately, this is a small area, and anything local is at least 30 minutes away with no public transportation, so it's a bit challenging.

Unfortunately CA  has been bad for building transportation (30+ years of incomplete bay area-LA rail!).