I really need help refining these ideas into something that is workable, and of course none of this is workable if we can't get a DSCR loan, which she's worried about.Between dealing with the symptoms of the stroke, trying to apply for workers comp and medical retirement, worrying about her sick time running out, and worrying about how she's going to replace her income she really can't deal with this, and I'm pretty stressed too.

check with your insurance agent.. also federal law dictates that when your owner occupying your 1 to 4 unit you don't have to follow the normal fair housing laws.. you can pick and choose who you want to live in the units .. now some cities or states may have overriding rules regarding this.. but federal law is clear.. on owner occ 1 to 4.. your exempt from fair housing.so you can have a dog and you could restrict dogs for others.there is a well known list of aggressive breeds that insurance companies wont insure.. this is easy information to get.

I don’t think that will fly.)Cousin a is probably screwing himself out of his home exemption either today or in the future?

Unfortunately you probably dont even get the section 121 exemption, certainly not 100% because she should be the owner.

Not knowing the law does not exempt you from it.

There are a couple of exemptions for those that lived under two years. 

I've seen lenders exempt years spent in college as "work history" but the borrower would still need to have sufficient funds/reserves and a solid credit score. 

I am a busy medical professional and don't have the time to try and find off market deals and also don't have the time to constantly peruse the MLS looking for deals.

Every state has exemptions.

A robust medical community also. 50%+ of the population here are renters.