As a management company, we also have a duty to get a property occupied with a qualified resident as soon as possible and sometimes that means adjusting rents down for right now to generate revenue.  

But if you have an owner-occupied policy while not actually living there, then you don't have the right insurance and may not be covered.

I would do a direct mailer in my area and try to pick up another owner occupied.  

Not exactly sure what Safeguard does but if they are originating notes for owner occupied properties then they need to follow the Dodd Frank rules and anyone buying such notes should make sure they did.  

Selling vacant is easier, but if you can't/don't want to vacate the property investors will still look at tenant occupied homes 

I'm looking at the property now, and it's tenant occupied.

Most occupied property insurance policies will cover "vandalism and malicious mischief" but there are different forms of policies so you'll have to ask.

With the exception of building a trailer on the property (these are hard to finance), this sounds like a good plan AND if you are using it for your business AND your business pays more than 50% of the rent (if you have more than 1 tenant), then this is a more financeable property in the eyes of banks and credit unions as it would be consider a commercial "owner-occupied" property. 

For example in many jurisdictions I can STR units in a duplex but cannot STR an ADU (some jurisdictions will let you STR if you owner occupy).

They only allow a certain number of non owner occupied STRs, and the there is a waiting list.