I sincerely thank you ALL for so many vital answers.

Hi David, the inspector found evidence in the attic and modifications/repairs to the framing.

You need to make sure the policy/coverage you get is designed for this use and not a standard homeownes policy.The Lawyer and the town can give you an idea of the Modifications you may be required to make due to:- ADA compliance- Fire Code Compliance- other Laws/Ordiances that may be triggered when you move away from a Residential to a Commercial exposure

If you look into the refinance point # 3, I'd mentioned my lender returned me around $22K as a loan modification. 

They may counteroffer or request modifications to the conditions outlined.Documentation: Ensure all parties sign and agree to the terms of the offer in writing.

Just this morning I was working on a modification of a blanket construction deal where the borrower is building 3 new construction single family homes.

I opted for a more complicated approach which requires a developer and never ending modifications which I anticipated -- yet frustrating at times.   

Loan Modifications Swell 195% in 12 Months: CRED iQ | CRED iQ Blog (cred-iq.com) 

Explore Loan Modification: Request a rate reduction or modification from your current lender based on improved property performance.3.

Like they said, NEVER let a tenant do any repairs or modifications.