As long as you're living in it as your primary residence and can provide proof of that, you can continue with Owner Occ tax rate.

You should check with your 1031 provider quickly.

@Vina Merrill,I don't have much intel on Knoxville, but I’m active as an investor, turnkey provider, and builder in Chattanooga.

If it is someone you know you can give them a straight return as if its a loan - can provide a lower interest rate to provide upside - it really depends on the lender and what are they concerned with and what is their risk profile. 

I can only speak to Milwaukee, but on average the three distressed properties I have purchased over the past ten years have appreciated an average of 200% all while providing steady cash flow.  

Additionally, you could also check with your insurance provider to confirm there's no active risk and provide that documentation to the lender as reassurance.

I found the son on Facebook and sent a quick intro giving my condolences, expressed my interest in purchasing the property, and provided my phone # in case he decides to follow up.I'm in the process of preapproval with a couple lenders, and have reached out to a couple realtors in my area to see which may be a good fit.

@Jason Lopez You don’t need an LLC to rent out a house in San Antonio, TX, but it can provide liability protection by separating your personal assets from your rental property.

I have multiple lenders that can provide 100% financing for your rehab projects.

How much "fantasy" is provided?