My goal is to invest this capital into multifamily residences (as few as possible) to replace my active income completely with passive income. 

There is a lot of great advice and detail on the requirements for DSCR in here and one small detail that I haven't seen mentioned - You have to already have a primary residence.

I would definitely consult/call the property tax assessor's office in whichever county you plan to reside in to be 100% certain as they will be able to tell you. 

If the unit they are renovating is vacant, they should be fine moving into that unit and using it as their primary residence...not what they wanted to do, but c'est la vie.

Investment Info:Single-family residence wholesale investment.

Hello, I am looking at building a primary residence with one of the large builders in my area.

I bought it off market at a great deal with a conventional mortgage as a primary residence with the plans to rent it after the 12 month period has passed so I can legally rent it.

I’m looking to start my real estate journey by house hacking a duplex and living there with my family while I renovate my primary residence.

If you're really intent on keeping the resident in place then I would just have a conversation with the manager and see what can be worked out, but if they're sticking to their agreement they signed with you, than you might have some decisions to make. 

Cheap but good decor can be found used, too.