Waiting 6 months would give you a better conforming rate/term. 

My overall recommendation (I am not an attorney) would be to rent the basement out at a very "friendly" price, and be super attentive to any tenant in a non-conforming unit. 

A recent snafu with my credit sunk it to the point where I'm below the 700 necessary for conforming cash out refinance, but above the 680 for a conforming "limited cash out refinance".I have several free-and-clear homes I would like to cash-out refinance. 

These is a bottleneck getting financing as an outside investor because banks won't give you conforming loans for an investment property in complexes with high (50%) investor owned units.

@Adelaide WolcottWell, investing with a non-spousal partner you need some sort of entity to address your concerns.Legal entities do not qualify for conforming residential loans.

You'll also want to consider the other properties in the area, because if the property doesn't "conform" you may have issues later in terms of comps on the resale, refi, etc.

Primarily, the issue comes down to costs as legal entities are not eligible for conforming residential loans and must use more expensive commercial lending. 

If there are not two separate entrances to each unit, ask the listing agent if it is a legal 2-flat or if there is a non-conforming unit/some other situation. 

For me it was really hard to find a lender for that first non-conforming loan.

Min conforming loan precovid was $50k I think.