This protects your investment and gives you leverage if there are issues.Other Tips:Make sure the lease explicitly defines the move-out date.Conduct a thorough walkthrough with documentation before and after the lease period to avoid disputes.Handling a seller-to-tenant situation can be tricky, but with the right precautions, it can work smoothly.

How would an umbrella policy protect against a security deposit related claim?

Would the buyers/borrowers be purchasing with the intent of putting a mobile home on the property and making it their primary residence?

The exception is: When the 2 members are married spouses who reside in a community property state. 

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).

If my target would be low income residents, are there any grants, tax credits, or funds available to help me with the conversion? 

I have not had any experience with Easy Street Capital, but David Lichten resides in Gardiner, Maine and I have done many deals with him. https://kennebecrealtycapital.com/It's great to have options and compare, plus he is local! 

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

Investment Info:Single-family residence fix & flip investment.

Also any tips for automating this as much as possible and how to protect the property financially and property management would be appreciated.I ALMOST understand the rental arbitrage strategy if building a company scaling with say 30 + units and looking for high short term cash flow.