I've used hard money for larger flips, but for stuff that makes sense for a buy and hold.

Obviously, I don't remember the exact word choice on the form, and was ignorant of what they were intending to ask...The closing attorney told me that that form would be sent to the IRS, so now I'm afraid it could bite me in the ***. 

Feel free to inquire about their staff qualifications if it's a larger organization.2.

You can see how extended furnishing timeline to save money may not be the wise financial choice.- who lives in primary unit?  

OTOH bathroom renovations aren't too expensive, and I am always a fan of a larger walk in shower stall. 

If by "residential loan package" you are implying a "Mixed Use DSCR Loan" unfortunately doesn't sound like it would work since the commercial unit is larger than the residential

St Croix is larger and more residential than touurist, however.

The problem for 99.99% of the tax sale buyers is that they have a budget and can only spend a certain amount of money... which can easily be accomplished from just a small number of tax sales in their state of choice.

You still need the reserves for now, but you are in a good spot.Your real choice next is where to invest.

Look for secondary or tertiary markets within a reasonable distance from larger cities.