2) If you do owner-occupied cashout refi for best rate, you technically have to live in the home for 12 months before renting it out. * Some responders here may suggest not worrying about that and renting it out anyways.

There are a lot of people that are wanting to owner occupy, which has driven greater demand for these properties. 

Most work like this: Rates: 9% to 13% (Most Deals are 11-12%)Terms: up to 36 Months (Most Deals are 6-12 months)Fees: 2-4 points(%) of loan amount paid at closing (Most Deals are 3 points(%))Minimum Loan Amount: $50,000 (For loans less than $250,000 $2,500 minimum fee)Max Loan: 65%-70% of After Repair Value(ARV)100% Rehab Financing Available (Require 20% of purchase price down payment or cross-collateral)Closing Timeframe: 48 Hours - 3 Weeks (Most Deals are 2 Weeks)NO PRIMARY RESIDENCES, NON-OWNER OCCUPIED ONLY, BUSINESS AND COMMERCIAL USE ONLY.

Since you'll be owner-occupying, take advantage of low down payment loans like FHA (3.5%), Conventional (5%), VA (0%), or a 203k loan for renovations.

If you are 100% occupied (and trending) no need to spend money.

Conventional owner-occupied mortgage rates are above 7% today (source: Mortgage News Daily - Mortgage And Real Estate News).

And if a property is owner occupied, how can you secure a loan with a hard money lender not being able to view the home to estimate repairs?

One meter reading for all usage or like some small communities a set price for each occupied home?

You will have problems having two different groups occupying the space at the same time.

I understand moving out of your home and occupying a unit in a duplex may be the best financial decision but make sure it’s the best decision for your family because transitioning from a single family house to an apartment with a family of 4 is not always the easiest transition.