I'm waiting to hear back from the County Zoning Department to gather more info on potential uses and confirm that it is SFH ready but in the meantime, I'm wondering if anyone has advice on the following: 1) Should I be concerned about the existing trailer and barn (and possible need to remove those?) 

Things may change concerning the lake property.

Also, I appreciate the concern with “not wanting to take on more debt.”

My concern is that once tenants are in more issues may come up.  

That said, if your main concern is the bank issuing a due on Sale clause or anything similar, there's likely nothing to worry about.

If there are any wholesalers that would need Transactional Funding on double closings due to legalities or concerns, let me know. 

I'd have concerns of buying high, then moving back home or to family or to next job and being underwater when I wanted to sell my house and losing a lot.

It's the best for everyone concerned. 

What lender is saying Or is concerned is that you may have ordinary income on box 1, but if you never took it out, how can they be sure they you have access to that cash.

Thank you Rick, actually my concern is whether a 5 plex would be ideal or to convert it into a 4 o 3 plex, my feeling is that there is room to move walls and do major changes.