However, this is a converted office building and your lender is going to price your transaction based on the overall risk associated with the deal.As a lender, I would look at this deal more favorably as a 6 unit rather than a 4 unit.

How do you know it’s not just some friend who will fudge the report to do a friend a favor?

Within that week I would say ~5 lenders had contacted me, and I was able to play their rates against each other until I got what was most favorable to me. 

I really hope I'm able to return the favor and add value to you soon. 

Not sure how short-term rental permitting in SA works, but in Austin where I live, it's much more favorable if you live on-site.$145K is high for a C-class house in SA, even renovated, even with a casita.

Do you underwrite deals at the higher amount favoring in all these costs?

Once u put all the cash into this property u will need to cash out refi to get more capital and the rates on cash out refi are not as favorable as straight purchase .

Do some googling & you’ll get some general advice on which state(s) might be most favorable (there are a few factors to consider).

I am the buyer, and most of the PA would actually be in my favor. 

The courts do not rule in favor of ignorance, and it’s advantageous to be more knowledgeable than tenants.