I have been reading through the legal jargon and have mainly interpreted information regarding being licensed to conduct business in real estate.Anyway, I would like to pick the brains of you savvy Oregon investors, because I'm the type to not get discouraged by limitations, but rather to find solutions to make things work.

I been traveling extensively to Buena park and staying in hotels.

We do the same thing all the time, however in our area, the savings in more like 100-200 a year per rental by structuring it this way.The agent is just doing a liability extension off the primary residence.

One million primary residence insurance with 1 million extensions to each rental?

She has done extensive renovations.

I did extensive remodeling at that place and heavily insulated and replaced with double paned windows and steel insulated doors, which helped reduce the sound transfer.

Bryan's transaction mention above is the proper way to conduct that transaction, IMO. :)

My experience in this area has not been too extensive.  

Financing owner-occupied multifamily properties (i.e. up to 4 residential units) has been extensively discussed as an effective way for new investors to acquire their first investment property and take advantage of the unbeatable downpayment requirements (e.g. 3.5% for FHA).

I just do not want the public at large believing buying a weapon makes all your problems solved. learn how to use your body FIRST (something you can defend with every place you go and THEN start learning external weapons that are an extension of your body that you can just use in limited places.