Some people might do the opposite, find the property first, then decide on location second, based on 1% or 2% rule or 10%+ cap rate properties in multiple geographically large markets hundreds or thousands of miles away, maybe look at a few photos, get a Realtor's opinion of the neighborhood and after 10 minutes they are ready to write an offer sight unseen, and "maybe" they'll bother to see the property at close of escrow if they can squeeze in a 1 or 2 day trip.   

Prior to 2008, I structured a bunch of line of credits on commercial assets, however, now, LOC's are essentially non-existent on commercial properties no matter the asset type or the geographic location.

Detroit demands a very specific geographic analysis and execution of that analysis...and not a global economic trend analysis.Does the auto industry play a role?...

.* If you are moving just a short distance from the current PR and/or moving from a SFH to multi, then make sure you have very good explanation letter to convince the underwriter why they should approve this purchase as an owner occupied.With regards to the financing options, I always prefer conventional, so PMI eventually drops off.

Should I get a new appraisal before turning it in to the county or write in an explanation that the dining room is not a bedroom and not worry about it b/c despite the # of bedrooms it still appraised much lower than the assessor has it?

Some wrong info here...Good explanation here https://www.kitces.com/blog/limits-to-converting-rental-property-into-a-primary-residence-to-plan-for-irc-section-121-capital-gains-exclusion/

I fear that if I do not use it from the start I will not be able to use it anymore2) Are there good explanations and examples on how to do it properly?

@Nick B.Thank you for explanation Nick

I've read hundreds of these and often have to call the agent for an explanation to ensure we're protected. 

Use of Funds- a one page explanation 2.