There was apparently supposed to be a tax abatement applied to the property but it never was so my taxes are a lot higher than what was estimated at closing.

You can apply for a HELOC and sit tight while you look for another property.  

The market in Kentucky is not fundamentally different from anywhere else so the "70% rule" would still apply in general.

USDA loans only apply to rural areas, correct? 

@Caleb Webster - how familiar are you with any regulations that apply to a second home doing this same strategy?

If it applies to SFR, the SFR will be getting sold and removed from the rental market.  

You can void your contract because it only included 1 tenant/occupant and because a new spouse would not qualify had they been applying together based on his history and your acceptance criteria.

If 2 adults are applying (not married), do I run background/credit checks on both adults? 

You really need to talk to your tax guy to see how it applies since you live there part time.  

(We applied for a new construction permit and one of the steps was to ensure tree canopy was preserved to a certain percentage)The seller (previous owner) was the one who did the tree removal Tree removal was done prior to our lot acquisitionThe seller acknowledged that all fines and penalties were paid in line with the tree removal PRIOR to acquisition.