Find  a partner who has a wheelbarrow full of capital that you can plow into a deal  and show their funds as your ability to close ( assuming they are good with it.... ) Good luck .

Oooook so when I'm projecting our expenses, I've been doing it wrong assuming that I will need homeowners AND renter's.

So assume $5,000 for a new roof.

That essentially means that you cannot use an SBA loan to purchase income property assuming all else is above board. 

Am I correct in assuming that the difference in the estimated payoff and UPB are any accumulated arrears, fees etc?  

Assuming your market is similar to mine, you will have to discount your price because the master suite being in the basement.

I assume around $210,000?

Based on my calculation on a two year term I could make around 40-50k assuming a 5% annual appreciation with the current market value at 215k.

By leaving the basement vacant for "a few weeks" while the upstairs tenant "gets settled", you're giving up (assuming three weeks) $588 in rent.

For the homeowner who doesn't have the means to stay in the house, the lender's preferred option is an assumption, which is where somebody else who qualifies assumes the loan and resumes payments.