8 Unit MFU

[Bayo Badejo]

Hello BP members, 

We are looking at an 8 unit MFU for an asking prince of $419,000. A price per unit of $52,375 with a projected 7.47% Cap Rate in 2015 or projected 11.16% @ 100% occupancy. 

Right now 7/8 units are rented (I would still verify terms). The property is also located near a park. Property has 3 "newer" furnaces and 8 year old roof. Owner pays water and electric. Located 10 miles from downtown Cleveland in quite residential neighborhood. Property last transferred in 2008 for $480,000.

Could I use owner-occupancy financing and move into the 8th unit? 

What's the cheapest money I can use to purchase the property (i.e. FHA 203k)?

Would underwriting use the revenue generated from other 7 lease agreements to qualify the loan? 

Any other advice

Thank you!