Residential 1-4 would be covered slightly more by the first position.That's the good news.

TOTAL SCAM  .. sad but this is all over the social media and internet.. people fall for it every day.. its the real estate lendings version of the Nigerian prince scams..    

Please see this article here for a brief on that: http://www.cityoforlando.net/news/2018/08/city-of-orlandos-home-sharing-ordinance-allows-residents-to-rent-a-portion-of-their-home-to-guests/ After graduating college I followed a similar plan to you.

The good news is that you're likely insulated  from some repair costs (e.g., replacing a boiler or roof).

I received bad news from the home inspector today, he found foundation/structural issues and recommended that I have a structural engineer inspect the home.

I hope it works for you .. good news is you did not risk much.

The good news is that some relief was provided last year to effectively provide a "payment holiday" to employees who separate from service (i.e. quit or terminated) with an outstanding 401k loan: Per the loan offset rules that went into effect with the 2018 Tax and Job Act: if you leave your job and the loan is current at the time you leave your job but then the loan goes into default because you left your job, you will have until your tax return deadline (including any timely filed extension) to make the loan current by depositing the outstanding balance into an IRA (and thereby avoid the taxes and penalties that would otherwise apply).

The good news to you as a buyer is the seller is the one who has already agreed to pay that commission (per his/her listing agreement) for listed properties. 

It's sad news though :(

Good news for me is that I am in the process of getting started.