It's important to maintain detailed records of these expenses.Non-Qualified Expenditures: As mentioned, there are certain costs that do not qualify for the credit, such as acquisition costs, interest on rehabilitation loans, landscaping, sidewalks, and parking lots.

If there’s an existing mortgage on the property, a subject to combined with a seller second, or a wrap around loan, carry significant risk and possible negative credit impact for the seller (and buyer).  

Conventional 30-year loan.

Problem is, the lenders my Realtor has done business with will not do a loan for a studio.

@Daniel Loane - who told you that you can't submit the rental registration?

It will be important in the long run.Otherwise, the differences will be along the lines of types of loans.

Some banks may only loan based on the value of the land.  

Use a "primary residence" renovation loan (Homestyle, 203K, ChoiceRenovation, VA or USDA) and buy a fixer upper.

The comps are between $118-$141/sqft, but it was purchased at $148/sqft.The loan is assumable at 2.75% rate ($139,383 principal remaining) but will cost $900 application fee and  between 1-5% of purchase price (assuming 2.5%).

Or, would it be easier to start off as a hard money loan rep?