My lot is identical but only has the house in the front.

You're going to have a hard time justifying yourself to a judge if two owner occupant mortgages close within a few months of each other, assuming of course the 2nd underwriter doesn't pick up on this obvious flag for fraud, cank the deal, and put you on a list that lenders share.Best bet if you want both: You're doing 25% down anyways... switch it over to investment property financing.

That said, the only reasons I could think of are 1.) it gets you a price discount because of your all-cash terms or 2.) your better terms let you beat out an identical purchase price offer.

The probate needs to occur to identity creditors, before the property is sold.  

You want to sell your property and have two identical priced offers.

I actually had a tenant in one of my other properties move out after 8 years and it looked identical to when they moved in!

Get your documentation together and go see the DA, Sheriff - whoever prosecutes CRIMINAL FRAUD charges.

Its fraud. 

Where you might run into trouble is if you were to rent both units again, and they were essentially identical, and you discounted rent for one renter but not the other.I have three places, all 4 bedroom and 4 bathroom that I rent by the room and have the basic utilities included in the rent.

The IRS doesn't care how you finance the property I would want to make sure with your mortgage broker that there are no occupancy requirements so you are not committing mortgage fraud