I am interested in using private money lending to make it happen.

(New build with Lennar)Do you think it is a good place to buy?

Would I be correct in thinking of it that way?

I got un-renewed by my old ins and rejected by almost all ins companies (except for some crazy ones quoting me 10k/year) on my primary house, which is far from any fire zone but I had 2 claims on my 2 rentals (I am a small player so under my name not LLC) in the past 3 years so I got fked. 

I will be moving into the 5 bed 3 bath because the tenant has been there half as long as the upstairs tenant (therefore that is the unit I am legally directed to move into vs the more tenured upstairs tenant).I do not need the space of a 5 bed 3 bath apartment so am planning on renovating the entire space and turning it into x2 2 bed 2 bath apartments while I am living there.

They made airlines stop doing it, follow up with short term housing. 

what would you be trying to accomplish by this? 

Yes, tax-wise, it may work the way you envision it.

That sounds like it's going to be such a fun project.

If you were direct to seller you'd have better luck but would take $$ and time to do so.