Non-qualified use is the rental time period before the 2 years of your personal use.

@Joe Jensen, talk to lenders BEFORE you buy so you know the lay of the land and have your financing options lined up for when you are ready to move.Not every lender has a seasoning period of 6-12 months.

@John CarboneIn order to legally qualify for a second home, you must occupy the property for a certain period of the year. 

Having a well-maintained property will also reduce the vacancy period.

They may be easier to get to do business with you.1) Acquire a home that meets your (and the banker's) criteria.1.1) Ask the banker to finance the first project for the time period until you can refi into Fannie and Freddie1.2) Ask the banker if she/he has any pull with the mortgage department at the institution to ask if you can go on portfolio for a short season.1.2.1) Bank earns in the short term on the portfolio loan, then when your timeline is realized, they earn on the origination and sale of your loan to Fannie and Freddie.1.2.2) Alternatively, use hard money until you can get your refi.

The property needs some minor systems upgrades and cosmetic upgrades that I pan to complete over a 9-12 month period while living in the property.

You're asking her to basically pay rent twice in a short period of time (it is her doing) and she may not have the money to do that.Also talk to her as to why it is late. 

I was wondering since the whole house has to be done, what is the best order to do the projects, to be most efficient and the least amount in each other's way? 

Quite a few lenders don’t even offer delayed financing at all and require a waiting period.  

Service is.Here's an article we update periodically on costs nationwide for a 1031 exchange - https://www.biggerpockets.com/...