And to be clear this type of a buydown DOES NOT solve any DTI issues. 

Income, employment and DTI would be factors with an owner occupied loan, so if you think you might have issues qualifying, making it strictly an investment property may be your best bet.

I'm going to be as lenient as possible I just worry that she could fall 1-2-3 months behind and it's just a really delicate situation to try to collect when she's having major health issues.  

Investment Info:Small multi-family (2-4 units) buy & hold investment.

For the last 15 years I have been answering questions from unknowledgeable wanna be investors who watched a guru on YouTube and now wants to know where to get the earnest money to tie up multi million dollar properties before he can flip them for $200,000 profits.  

Investment Info:Large multi-family (5+ units) buy & hold investment.

The appraisal I expect to come in at about $650k when it's all said and done meaning the refi at the end of this should result in very little out of pocket in total.The issue for me is the lending side of this deal.

You cannot kick them out; cities have reasonable standards for issuing citations, so you have a problem3.

If it is a small multi, then you live in one unit and rent out the rest.

Investment Info:Small multi-family (2-4 units) buy & hold investment.