I went to municipality and they said they do NOT under any circumstance even allow non-owner to  apply for c.o let alone obtain one, and they do not issue temporary document.

It is a sad state of society that people want to say "I am emotionally disturbed and can not function with out a dog, or peacock, or ferret, or whatever" just to be able to take their pet with them.Not withstanding that there are real support and service animals that are needed. 

It can be a frustrating experience but keep it non emotional and stick to your numbers!

You can do a higher LTV if you just pull out an equity line or a heloc, however these two ones are not ideal for long term but just as a temporary 6-12 mo plan so if you don’t plane on paying the heloc anytime soon, you are better of with a refi cash out. 

(for whatever he is currently paying/comfortable with) there should not be any emotions involved, as there is no way he can afford those terms and neither can anyone in his immediate family. 

If this case happens sometimes the property owner goes to their lender with the mortgage for a temporary workout solution as it would be hard to cover the total monthly mortgage payment while having to give tenant temporary rent relief until construction is completed .

Sometimes our emotions get in the way. 

I would try to find out how likely this is really going to be temporary, specifically  for how long,  and if the daughter would be more then a guest run a background check to see if she meets your screening. 

Lessons Learned: Never pay a contractor/handyman until the job is completely finished, never sublease (subs don't care about the property/damages), expect more repairs than originally intended on the first deal, people need things spelled out to them, don't get emotional when talking with tenants and never let on that it is your first time (they will try to take advantage) Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Lessons Learned: Never pay a contractor/handyman until the job is completely finished, never sublease (subs don't care about the property/damages), expect more repairs than originally intended on the first deal, people need things spelled out to them, don't get emotional when talking with tenants and never let on that it is your first time (they will try to take advantage) Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?