In order to get a license I need to have a permanent address to register the business under.

We have been looking at investmests such as duplexes that we could live in temporarily until we find a longer term home, or until we decide to make Bend a permanent home.  

I felt somewhat trapped--wanted to maintain good relationship with MIL & her husband(who bought house and are going to be a permanent fixture in the neighborhood), but DIL & BF didn't look great on paper.

When our permanent residence was build we made sure part of it was set it up to be finished as a mother in law/ duplex.

The "carry trade" is sexy until it destroys your balance sheet.Short term, high value add deals that you can refi would be my strategy although in most cases  I wouldn't risk my home to do it.If you can live with a permanently higher payment then do a cash out refi and keep your powder dry for the opportunity with solid yield.If I sound like I'm speaking martian right now then don't move forward!

Then in 3-5 years you move to your "permanent" house you will have two rental units that most likely pay for both your old home and existing.Because your cost to buy is so low < $5000 you can buy the property, shop for renovation money, maintain an apartment (small studio or 1 bedroom) while the place gets livable.If your partner does basic construction he will know people who can do the heavier stuff, he doesn't do personally.

I am wondering if it is within my rights to make it a permanent relocation. 

Season it and then put on permanent financing.

Furthermore, you will need a job (or another stabilized source of permanent income) to help you build up your investment capital.

I see no way that they'll grant you any kind of permanent waiver.