Has its own kitchen, bath, laundry hookups, little yard and living room space.  

As I am living in the property I am updating things such as the bathroom, paint, cabinets, countertops, and doors.

Correct, the same prohibited transactions rules would apply to using a unit as an office as they would to living in the unit.

All she is there for is to make sure that the rent is being paid and to be there to financially assist her son. 

I’m a local agent here in Memphis that assist many investors.

@Stephen Rinaldi just curious, how long is the owner required to live in the property under these terms?

It was originally bought to be lived in the on the top floor while renting out the in law suite.

Memphis is a great rental market.Feel free to reach out if I can be of any assistance.

@Taya Shavers not sure how many people are going to take the time to read your novel and give you feedback for free.You can always pay someone for their time if you really want assistance.If you want free assistance, suggest you break your request into smaller, more easily read chunks:)

They clearly are living at or close to, pay check to pay check if they need RAFT in the first place.