The lighting is a little dark in the picture but this will be a lovely/bright kitchen and living room for our next resident.

This means that your permanent residence is excluded (except if you are doing a house hack in which the part that is rented out is eligible for cost segregation).

We explained why we decided not to sponsor the deal, how you could approach the situation better next time, and what you need to have prepared when you approaching other sponsors in the future.

Quote from @Khon Kounbandith: Investment Info:Single-family residence fix & flip investment.

House hacking is a fantastic way to start, but preparation is key.

Also, if it's Lennar, be prepared for problems, insulation issues and therefore paper thin walls. 

Just be sure to clarify that she isn’t a leaseholder but is authorized to reside in the unit.If you’re concerned about liability or want more peace of mind, you could ask the primary applicant for additional security, such as a higher deposit, depending on what’s allowed under Colorado law. 

Let me know if you plan to make it so I can let the owner know and he can make sure they are properly prepared.

@Nicholas A.House Hacking a primary residence is the best way to generate wealth. 

However, consider STR seasonality, local regulations, and management demands, and ensure your equity loan and new primary residence costs fit comfortably within your budget.