Are you sure you can borrow the $500k of the $1M purchase since you won’t be the owner?

If there issues that need to be worked out with the 6-unit property, I would utilize that as a negotiating tool to work out a seller financing strategy with the current owner. 

Thank you everyone for your inputs especially the point regarding owner not needing permission from the tenant to enter the property  - I was able to work with my realtor, tenants realtor and the builder to gte the 11 month warranty repairs done.

FHA loans include oneproperty per FHA loan, owner occupied for at least 1 year, and can apply for new FHA loan in 2years.

Do you know if the eviction process was started by the owners before foreclosure?

Must have multi-family zoning and be 500+ feet away from another non-owner occupied STR or you must live in the property for 6 months out of the year. 

A few years ago I got caught with a number of housing units I built in Philadelphia I planned to sell to owner occupants if not for the  2022 unexpected rate increases.

The negotiations were tough because after we opened escrow we realized it had five different owners with five different titles.

There were emotional stories about the military, guns, family, faith, etc.

While we were in escrow, the title company discovered that the owner didn't disclose a second mortgage on the house to neither her agent nor the title company, her plan was trying to dismiss the foreclosure in court and hope this would go away before anyone would find out about it.