This is especially true for homes attractive to owner occupiers. 

I am pretty sure they are only economically motivated since no one in Cincinnati actually discriminates based on race other than 2 and 3 family owner occupied units.

Stay away from occupied properties since you can't get rid occupant for at least 90 days before start eviction process ( new law ) I'm going thru this right now and it is very very frustrating.

Interest rates will also be .25% - 1% lower on an owner occupied property than on a rental property.Contrast that with buying out of state / non owner occupied properties.

Is this for owner-occupied homeowners? 

Our strategy is to purchase a multi-family unit that would allow us to occupy one unit and rent out the remaining units on a long term basis. 

Unfortunately,  that’s not accurate and you can get an owner occupied STR permit in any zoning.  

Are you close enough to move into the unit that they are occupying?

The responsible person may never wind up occupying. 

Purchase price: $376,000 Cash invested: $20,000 House hack owner-occupied investment turned to long-term hold.