I intend to take care of this problem as fast as possible.

I am from the DMV (DC, Maryland, Virginia) area but I currently travel alot for work so living in a different area isn't a problem as long as I could find a nice house in which I could "house hack". 

They're not a problem, as long as you don't disturb them

If you do one you shouldn't have a problem as now you can use property as cross-collateralization.

You can buy your first few investment properties with 20% down, so a 50k purchase would involve a 40k loan, should be no problem as long as you have decent credit and debt-to-income ratio that is reasonable (35% or less would be good since you'll initially have to absorb the entire PITI of the rental property loan in the "debt" of your ratio, and 40-45% is typically as high as banks want to go.).The PITI on a 40k loan should only be around $300, depending on taxes in your area, so add that to your current monthy debts, then divide by your gross mthly income.

Have the rookie loan officer switch the loan to a conventional mortgage and that should solve your problem as long as the property is a SFR. 

There is a large disparity between what 3/1-3/1.5 smaller homes are selling for at about 220K and what larger newer 4/2-4/3 homes are selling for at about 340K, and homes with additional apartments touching the 600K range.The best use of the property would be to complete the main home and sell as a home with an income/mother in law suite, and is what they would prefer to do but are not in the financial position to do so at this point.Mixing investment as a family is not a problem as we've already done that before, and my Mom just posed the question of if I would want to do that.

Getting a loan for this property will not be a problem as I've done several similar deals with my bank and the house has been inspected by the city.

This is not a resale problem as long as it is not torn off the home.

I have talked to my lender about using passive income i.e. notes/rental income to be counted as income for conventional financing and he said it shouldn't be a problem as long as the income is established and consistent for some time.