If that is the case the property manager did not run the persons credit and only provided the falsified credit report that was provided to them.If this is in fact what happened am I able to go after the property manager for negligence?

And I couldn’t tell if it was the wind or negligence and I didn’t want to start pointing fingers. 

The current interest rate on any account you have in a bank is negligible.

The Owner would be on the hook for the negligence of the Manager and agree to hold them harmless unless the negligence is deemed “gross” negligence or intentional misconduct on the Manager.  

Keep in mind that the burden to prove that you were negligent after a loss is up to the tenant to prove in court.

Despite what you've said in advance, you can't change the terms of a written contract without all parties agreeing.You need to write your tenants and notify them that they will be held liable for any plumbing or other repairs caused by their negligence.

The rate savings for conventional currently is negligible and is less than a 0.25% if you are looking at the right lender.Fannie/Freddie, and other agency loans, do NOT lend to businesses. 

I took reasonable steps to prevent further damage, and the damage was resulted from construction defect and negligence.

uhh yes this is totally occupancy fraud, and your LO should know better than to be advising you to go about it this way. he's right that people's lives change and situations come up, but to guide you in this direction seems to be negligent behavior at best, fraudulent at worst. consider the implications if the lender found out you had no intention of moving in, but knowingly took out an owner-occ loan.... the note could become due and payable. like, all of it. immediately. worth the risk for an additional 5% cash-out?

They damaged the cooktop due to negligence and abuse.