@Pradeep Prabakar Ravindran Assuming you have lived in the house for at least 3 years, you have several years to take advantage of the capital gains exclusion.

Buy a duplex as a primary and live in half for a year.

The truth is, about 99.5% of lenders who offer conventional mortgages in the US won't lend to someone who isn't based in the US, even if that person is a US citizen living abroad or works for a US company.

If I want to continue to live in my primary residence AND now rent out a portion of it to a renter, am I able to do so? 

The cost of living is extremely low compared to other cities and you can still many many positive cash flowing and 1% deals here.

I also live very frugally. 

I think it depends if they need to live on the fees or not.

Unless you are living in the area where the rental is, managing it remotely is not a good idea. 

The tenant is on permanent disability, and has been hospitalized a handful of times in the two years that she has lived there.

That should give them enough time to find a new living situation, in my opinion.