If you are on septic and it's adding a below-grade bath you could collapse the system if it was not planned for.

@Alyssa Magyar I'm also trying to set up a townhome for a STR/MTR blend; at least that was the plan.

the owner would typically pay the commissions on a commercial lease; however, an option to renew is an option to renew. it just gets renewed. there is no new lease, no new leasing agents, none of that. it sounds like they aren't exercising their option to renew. they are essentially letting the existing lease expire and negotiating a new one. my response would be - we either renew as is as provided under the existing lease please plan on vacating as we'll start marketing. it is possible that we may come to terms on a new lease but no guarantees.....

If you cannot find insurance there is always the “California Fair Plan” (CFP).  

My plan is to rent out the property and refinance the property as soon as possible. 

You mention mobile home(s)...perhaps implying this is a mobile park community?

Download the TX state-specific leases from BP (I had to enroll in the annual pro plan to access it. there are promo codes)2.

One of the biggest is parking. 

The plan is to live in it for a cpl years so right now I’m assuming my best bet is a tricky FHA 203k loan.

Will depend on several factors like the type of property, type of tenants, your risk tolerance, other assets you own, your estate planning, laws where the property is located, etc.