Its not clear from your post if in fact there is a tenant living in this basement area ? 

If you are planning on living in the property as your primary, you can request to terminate the lease as you will be taking possession for owner occupy, but confirm with a local real estate attorney on the specific verbiage and process as it varies by state. 

I failed to mention he doesn't have a job, he is solely living off this lump sum which I thought was fine considering all the great references I received. 

The subjects are on point along with the guest speakers that share their good and challenge experiences, after all we are here to learn, and making mistakes are part of the process.I’m original from Lima - Peru (bilingual of course), but I’ve been living in the USA for 24+ years. 

I just recently sold an investment property that i originally lived in. 

I got a hold of an agent early Sat morning for a listing that went live late Friday night. 

The problem you are likely running into is the Log Cabin part of it - at the end of the day, DSCR Loans are really still intended for properties that are generally usable for full-time owner-occupancy year-round living if needed - so true log cabins are pretty much outside of anyone's box.However, its definitely a grey area on what differentiates a "Log Cabin" from a "Cabin-Style" home. 

Here’s the situation, we’ve rented here for 12 years from an old lady that lives an hour away.

Though you still owe depreciation recapture.)This is because our “investing forefathers” used to move in to properties that were rentals for 18 years, live in them for 2 years and take ALL the gain tax free.

The main items in our renovation are:New water main from curb and valveNew electric service and panelAdd bathroom + convert to full bathLVP in 70% of the houseInterior PaintingAdditional bedrooms in basementKitchenette in basementEgress(x2) in basementOur scope of work should create a great living space for us to grow into, but also provide a rental unit that competes (or even exceeds) the area offerings for medium term rentals.