@Chris PurcellI'm somebody that likes to keep situations simple, and by letting emotions and how you feel get involved, one can make any situation very complicated.

Most Likely we would have to buy the property with a loan and get a construction loan for the upgrades to convert.

(rent payment at fair market value.)Loan Payments: Ensure the rental income paid by the LLC is used for mortgage payments, clearly documenting the transactions to avoid co-mingling of funds.Insurance:Landlord Insurance: Obtain a landlord insurance policy for the rental portion of the home through the LLC.Homeowner's Insurance: Maintain a separate homeowner's insurance policy for my personal residence.

Has anyone had success in buying down rates on single family with commercial loan?

Unfortunately, that won't matter as  Fannie Mae and Freddie Mac, the Government-Sponsored Enterprises (GSE’s) that set the guidelines for conventional loans, which most lenders follow for other types of loans, too, require that a condo building’s master hurricane insurance policy provide 100% coverage of the replacement value for the building. 

Every calculator has stuff that seems irrelevant or is not true to the situation. 

@Eryn GarciaPros are that students generally have consistent income from loans, parents, grants.

Which the outcome would be you have to move out and hope your renters insurance covers you.In either situation you are leaving in two months and owe that rent.

I realized the value of a reliable PM, unfortunately, I currently lack that asset.Q1: Given my situation, what is your recommendations?

Saving 3% per year will save you $1k/yr, $80/mo, of getting the loan costs you nothing.