This is a terrible way to treat people and it gives Landlords a bad rap.

Thank you for clarifying.Would you mind suggesting how best to treat this transaction?

Even though you've said you're not going to treat the 2nd unit as an investment, I'm going to answe as if it is an investment. 

Treat them right and  you might have a gold mine.  

That includes treating every market like it's a new market, even if they just listed a home in that market 3 weeks ago.

You don't want someone that treats your property like a hobby. 

As far as financing my only suggestion is to check with your lender for specifics however according to my father in law who is a loan officer for a bank this is an issue in the industry it is still treated as a negative mark. 

Your property can be treated as both an investment property and a personal residence.

I show my appreciation by operating within the law, treating my renters honestly and fairly, using strong written policies so there are no surprises, and I respect their right to quiet enjoyment.

Just being human & treating people like people will go a long ways, always empathizing with tenants.The biggest one was me helping my tenant get proper permits & licenses (store owner in a commercial retail strip) which I had inherited when I bought the building.