What insurance company is selling an owner-occupied homeowners policy for a house nobody lives in with a premium for guest damages and then knowingly letting you STR the property full-time as an investment?

While you may be willing to live without heat/ac or hot water for a week.

I am considering living in one of the units myself.

Too bad you can't buy something owner-occupied, put 5% down with the best interest rate, live in it for 12 months (and fix it up), rent it out and repeat the cycle.Here's some other info you might find useful:----------------------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

We haven't lived in the townhouse in the last 2/5 years so we would get hit with full capital gains.

South Carolina (where I live) is a great state for many things but not rental real estate.  

Financially it only makes sense to invest remote if you have a sufficiently large economic delta between the market you live/work and Milwaukee.

I work in group home settings for a living and at my previous facility there were two clients per bedroom which would give you potentially 8 in your house while at my current job there is one client per bedroom which would only be 4 clients in your home.

I live in MA and I know it is a nightmare to deal with tenant here.

Will be difficult because you currently live in the property . is the 2nd unit livable and just looking to renovate ?