This process can be very costly, requires zoning permission, in addition to all the items you listed.

We provided her with all of the required records.

Did she ever mention requiring any noise buffering for her unit due to her sensitivity? 

I saw a lot of potential even though there was much deferred maintenance, poor mgt. and significant water damage in one unit requiring complete rehab.

Ive seen conflicting answers online and just want to know if Its legal for me to occupy the home down the life if life circumstances change and I need to while still renting out part of the house?

It literally takes less than 10 minutes to set up free online rent payment at one of the several who offer it for nothing, and another 10 minutes to set up accounts such as Square or Stripe to collect via credit cards and other electronic payments. 

Yes, they require some extra follow up.

Rent's have dropped in this area and may continue to drop a bit more( lots of new inventory coming online this year).

This would depend on local municipality requirements.

Since the Securities Act requires the registration of the offer and sale of most securities, the investment club must first decide if its membership interests are “securities.”