Then I was told by another lender then no I cannot buy this property with a FHA because FHA guidelines are that I could only purchase a mix used property if it's at single dwelling with a commercial space attached to it that is less than 49% of the residential part other property.

Much of the regulation applies to renting out individual rooms and/or short term rentals in an accessory dwelling unit(attached or detached ADU on the property. https://www.oregonlive.com/portland/index.ssf/2018/08/80_percent_of_portland_airbnb-.htmlAs a side note,  CM2 land on SE Belmont is a prime zoning for building plexes. 

@Tony Roddenberry,Quick and dirty answer to your question.If you were able to take the roof off your dwelling structure, pick it up and turn it upside down, everything that falls out would be personal property (free standing appliances, furniture, area rugs, are examples) that could be depreciated over five years. 

If the property is solely tenant occupied you will be looking for a Dwelling/Fire Policy (may be called a Landlord policy or similar name) or a commercial policy such as a Business-owners or Package policy.Most Homeowners or Dwelling/Fire policies include:1.

Yeah Age of dwelling can be a factor but its still under 100 years old.

If your company does not, then you need to switch to a Dwelling/Fire form.  

I would be very surprised if you can find something with two legitimate dwellings in an A or B neighborhood for less. 

If you are NOT in an X zone, you are likly in an AE zone and then the rates are a function of the BFE Base Flood Elevation and the lowest elevation of the dwelling. 

(1) My husband already pitched the idea to her about this, so I'll just have to tell her that he didn't discuss this with me and the answer is no (2) Definitely agree that we are emotionally attached to this "dwelling" and have to see it as a rental property and not our home (3) We will talk with her, but I don't know how to avoid the small talk about us, I don't want to give her very much information and want to deflect all of her questions about us.

Hi,So I’m purchasing a single family dwelling currently 1850sf with a basement.