You can use conventional financing, up to a fourplex, and if you live in one unit you may reduce some of the property tax for the space you live in as it is your primary residence and you can also buy with very little down as opposed to buying it strictly as an investment property.Duplexes are a great option and you generally also always have at least one paying tenant and can be bought similarly.

If you buy a property as your primary residence and live in it for 2 years then rent it for up to 3 more (so you've still lived in it for 2 out of the 5 years prior to sale) you would get the entire 121 exemption tax free. 

Or maybe an easier way to ask: are there states that allow non-licensed lending on owner-occupied/primary residences?

Rather than provide an example using commercial property, I’ll use the example of a property I purchased two months ago as a personal (2nd) residence, from the viewpoint of the seller.

Every day, the Chemical Plants (Dow, Shintech, etc.) and residential neighborhoods that surround the site of this location provide a high traffic count.A great opportunity exists for a tenant that is willing to market their business to travelers of Hwy. 1, the residents in the surrounding neighborhoods, and neighboring communities.How did you find this deal and how did you negotiate it?

@Brian Scott, you have the option of using a 5% down conventional multi family loan purchase for your next primary residence on up to 4 units.

As a final step, they requested an in-person appraisal to confirm the value of my current residence.

Investment Info:Single-family residence other investment.

I am getting ready to convert my primary residence into a rental property after we move.

I am open to local primary residences for house hacking or out of state investment properties in high rent low house price markets.Thank you all for your help!