Costs also include changes to your current planning and other risksThere is so many problems with places allowing tiny/alternative houses that unless you are really in the boonies and a really well visited area by short term types, I doubt it is a viable longterm plan

If the only issue you have with them is the late rent but always paid, why would you at least not consider an alternative that benefits both parties? 

Alternatively, is there an advantage (tax-wise) in holding on to it as a rental for any period of time? 

The usual alternative is a phone call which is much harder to document.

Also I was told that this type of loan (depending on how stringent the lending institution is) can only be held in your name.I went ahead and applied anyway and I have been accepted for one through Loan Depot so I'm still looking into alternative sources of financing because the more options the better.

The alternative you're proposing of holding it and potentially only selling a half is a much better one. 

As an alternative so you don't have to lie , there is an investor loan for both single family and multi 2 to 4 units.

Total damage--$1200 treatment and rebuilding a wall that we were planning on moving anyway.

I can not say in the lease, "This property does not need to have heat, running water, or sewer treatment."

If so, is there any sort of way to obtain permission or find an alternative source of comp pics for the flyer?