The other way to satisfy is to get the property owner to refinance but that is not always in your control. 

Hello,I'm looking to purchase a condo as a LTR investment but have received some conflicting advice.  For an absentee landlord, it would seem that a condo could have less maintenance headaches than a SFH and lower ris...

@Bryce MillerWelcome, and congratulations on making the decision to leverage the owner occupied loan to get started in real estate investing.

Just like the asking price, just because the owner suggests one interest rate or term doesn't mean you can't offer something different. 

:)As for LTR rental terms, usually we sign a 1 year lease where tenants are expected to pay Electric and Gas if applicable, while the owner typically pays water/sewer/trash with the city. 

It justifies the property selling for greater than just market appreciationI do owner builder rehabs but sometimes use contractors for large work scope or scope beyond expertise.  

We're still waiting for the owners bank to let us know if they'll actually help us or not.

I have a property that I could sell for somewhere around 400 K with owner financing.

Some places (including my own market) require an out of area owner to use a local property manager.

With the exception of building a trailer on the property (these are hard to finance), this sounds like a good plan AND if you are using it for your business AND your business pays more than 50% of the rent (if you have more than 1 tenant), then this is a more financeable property in the eyes of banks and credit unions as it would be consider a commercial "owner-occupied" property.