If you want to investigate this a bit offline I can see if the bank is missing something (they usually are).Whether you're house-hacking or buying an investment & renting, it won't make much a difference because when you apply for the next purchase you can factor in the rental income you'll eventually receive from the unit you're currently living in.I would focus on two things:1.

:)) But I imagine this is really easy to figure out with whatever investigation they do.

I would definitely take advantage of the relatively low interest rates and secure a loan rather than pay all cash.In the meantime, I would investigate some passive investing real estate strategies like apartment syndications.

Now today I received a phone call and email from a Consumer Protection Investigator-Mediation Unit letting me know she filed a complaint and saying that I was evicting her... and I have 10 days to get back to the investigator explaining my side with supporting documents. 

Otherwise investigate the market you want to live and buy there before you move. 

Neither you or the owner want to have anything close to HUD investigation into this area.  

Recently, they engaged a plumber to investigate a gas leak and the recommendation was that the gas line needs changed in one the units at a cost of $3600.

I need to investigate the specific details of the "arms length" requirements.

Your past relationship is not hard to figure out or investigate asking for forgiveness with both of you on mortgages!

Would that be an area to investigate further or should I stay away?