No hard money lender is going to lend to someone who hasn't managed property or gotten through a flip or brrr successfully - unless they know you or your family in some circumstances or you've got an insanely detailed plan and good mentorship.  

I was in a similar circumstance a few years back when getting started.It's not easy "finding" a mentor.

The only allowable circumstance is for my primary residency.Can I still claim my house as my primary residency, even if I have tenants set to move into it?

This way you keep your original, cheaper financing in place and get a loan against the remaining equity you have in the property.The only reason you would want to restructure existing debt is for more favorable terms--that may be interest rate, length of years (i.e, lower monthly payments), or being able to take out more than you could with a home equity loan and having two separate debts on your home.In some circumstances, like the third one above, it may make sense for you even at a higher interest rate, because the other terms make the overall deal more desirable for you.

They applied, then immediately withdrew their application due to personal circumstances (roommate drama).

But it is something I would absolutely never do unless there were some very unique business relationship/personal circumstances.

Maybe depends on your circumstances.

It's illegal in almost ever circumstance.

So yes I very much agree that political and legislative risk is one of the largest risks we deal with in real estate; but even in extreme circumstances, opportunities would exist (with completely different business models). 

Due to circumstances unforeseen in 2019 when I applied for the permit I need to sell before the 12 months is up.I paid my attorney to look into the risks associated with this and the fact that I signed the permit application with the intention of staying in the home, but now there is just no way I can stay there.