Pipes froze up and when thawed out it busted water meter and main water shut off pipe has a pin hole. 

I welcome any feedback as to whether or not this would be a worthy use of my time, but from both a regulatory and monetary perspective these seem like preferable targets to me when compared to SFH. 

Yesterday, we've noticed mice going in and out of the garage shed and into a hole in the foundation of the house.

The lender is just making sure the house is in a reasonable condition, rather than under renovation: such as no holes in walls, no loose wires, good roof, flooring in place and so forth.  

I do higher end flips, not crappy quality like most flippers so maybe others will have different prices, but more or lessKitchen-$8,000-$12,000 this would include cabinets, pulls, backsplash, applainces (kitchinaide or samsung or fridigaire),countertops ( i usually use quartz) and any electrical or plumbing neededBathrooms-$4,000-$5,500 per bathroom depending on scope of workYou did not mention things like paint, flooring, trim, base molding, doors, windows, roofing, siding, HVAC systems, so I'm not sure if you need that but here are some of my other rough costsFlooring-$2.20 a sq foot to sand stain and refinish wood flooring, $2-3 sq for vinyl plank or laminate plus another $1-3 sq for installHVAC generally $3,000 per system so $6,000- $8,000 for a AC/furnace swap outDoors and trim/base for a 25000 sq foot house you'd probably be at $4,000-$5,000 all in costs for materials and installPaint I ALWAYS underestimate, I recently completed a flip that was 1700 sq and for paint/caulk and filling nail holes, it was nearly $6,000... painters make alot of $.

Or is there a loop hole because the gov is forcing me to move?

It would be one who is bearish on our leaders and their ability to control monetary and fiscal policy who also wants exposure to CRE.  

It's written rather horribly, so many holes in it, so no it does not detail exactly what denotes "need" nor does it say anything about how long an owner must stay in the property.

The back side shows you the screw holes attached to the trusses.

I have been down this rabbit hole and just want to convey to you my own experience.