Most of my purchases, and clients I work with, are leveraged so we are looking for as much consistency and security as possible so that puts us in more owner occupied type areas.

The house is currently occupied by the people that the bank foreclosed on. 

I like the idea of multi family properties, this is something we could occupy one portion of, however these are uncommon in the city we live.

Works even in an occupied home...

Both units are currently occupied with leases expiring in Dec 2024 and June 2025 respectively.  

It made it super easy for us because he already knew exactly what pictures to take, how to make sellers feel comfortable (if he was going to an occupied home), things to look out for, etc.Unless a seller has grossly misrepresented the condition of the property, we very rarely have to renegotiate after we "inspect" the property.

It meets the 1% rule and is fully occupied.

Otherwise, you are just gambling that the bank will not call the loan if/when they discover you have left the property (which probably states it will be owner occupied in your loan, if it's a primary) and are no longer making payments. 

Turning the pool table loft area into a full-on game room, or maybe even doing a projector screen with a home theater or video gaming set-up there - that could be a huge selling point for families looking to book a stay with amenities and spaces that will help keep their kids occupied and entertained.One note on the existing hot tub: having an awesome, well-running, clean hot tub can definitely help you command a nice premium on your STR bookings. 

It would not be owner-occupied so my concern only goes as far as the area not deterring potential tenants from wanting to move in.