Mixed-use continuation is best served if you have foot traffic there or if there may be local business who could use a storefront and there aren't a ton of other similar mixed-use options near by.If I was choosing, I like mixed-use better because it gives you a diversified investment inside of one investment.

Which is kind of what should be done anyway if your serious long term.... or would a different path be a better option here?

Quote from @Michael Belz: Now, I have two options: I could fix and flip it with an estimated $200K rehab for an ARV (After Repair Value) of $825K, having purchased it for $465K. 

Working from another location is not at option.

Try to narrow down your options to the top 3-4.

Alternative options include offering a significant down payment, a lease-option agreement, a joint venture, or a deferred closing to align with John's timeline.

However if you are looking for options without points then you would either want to consider taking a higher rate or increasing the term of the prepayment penalty. 

This can happen in the higher dollar markets.. but if you get stuck with one in the low dollar markets you dont have the option of demo and rebuild your stuck with what you bought and trying to put it back together.But we have all bought hoarder houses , Animal houses, extreme smoker houses, crack houses, Whore houses you name it.

@Jaycee Greene I want to house hack for my first property whether that be SF or Multi Family, there is not too many options where I am for multi family though unfortunately. 

Maybe something happens on the block which pushes rental rates down, but still provides a sale option.