They refused, saying there's a new rule that owner/occupants can only get permits on houses they have as primary residence and that any other house needs a contractor. .........Aaargh!!!

Investment Info:Single-family residence fix & flip investment.

If you can't get the residents out that are not paying, then nothing will help.I would hire an attorney that deals strictly with evictions and start issuing eviction notices to anyone who has broken the laws of their lease.

We've decided to make the new construction our primary residence after the purchase.

From the research that I’ve done on FHA, if you live in it as your primary residence (“it” being single family or small multi family units (1-4 units)) you would be able to qualify.

Live in it for two years as your primary residence and sell it tax free. 

Hello BP friends, I purchased my primary residence a couple years ago and it is on a double lot.

If instead it is currently rented, I would manage it very carefully and pray to God the current residents move out voluntarily and hope they never look back.

And when you sell it if you meet the primary residence requirements the profit is tax free.It is possible in many instances to own successful rental real estate that generates real dollars in your pocket but operates at a loss for tax purposes. 

The biggest thing I'm seeing actually isn't his residency status, but I think you'll have the biggest issue with the value of the properties you are looking at.