You can look at an FHA small multi loan which would accommodate you living in one unit and renting the other out. 

The tenant started out nice, I made a few accommodations when the tenant moved in such as allowing move in 2 days early and not charging rent.

If the seller was more accommodating, or their in-place financials were more in line with market, I'd have been out-bid.  

Is a lot of electrical and plumbing work needed to accommodate the conversion?

It’s a tenant’s responsibility to move there stuff typically for you to do work that can be reasonably accommodated.

., 2-car garage with a long driveway (able to accommodate 4 - 5 cars).

The lodging rate covers the cost of accommodations, while the meals/incidentals rate covers meals and other small expenses.

This approach can often accommodate the unique or unconventional real estate investment projects that wouldn't qualify for traditional financing.However, hard money loans are not without their downsides.

Or the extra space could be assigned to personal service workers, should a tenant need an accommodation for a caregiver or other such worker.

You may find they will accommodate you some of the time if they can.Plus, I would put the info about the dogs in your ad so guests will be aware.