Relying strictly on principal pay-down is way to unrewarding for the effort required, in my opinion.

Principal and Interest would be $503 and Taxes & Insurance would be $569 a month.

AFFIDAVIT OF OCCUPANCYApplicant(s) hereby certify and acknowledge that, upon taking title to the real property described above, their occupancy status will be as follows:Primary Residence - Applicant(s)shall occupy, establish, and use the Property as Applicant(s) principal residence within 60 days after closing and shall continue to occupy the Property as Applicant(s) principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower’s control.

Principal and Interest would be $503 and Taxes & Insurance would be $569 a month.

Better yet - pay a little bit MORE per month in principal reduction with each payment, or make 13 payments per year - from the tenant's cash flow.2.

To be clear, you're asking if there are any benefits to a loan which allows the lender to go after you personally in satisfaction of the entire principal (simply speaking)?

with the loans there is usually a minimum amount you can borrow and is a fixed rate for set amount of time. usually with a HELOC more goes towards the principal because of its shorter loan span.

@Brett Kash One thing to keep in mind when looking for an FHA owner-occupied triplex or fourplex is that 85% of the market rents on all four units need to cover your monthly payment (principal, interest, taxes, insurance, and mortgage insurance).

Grandmother is eligible for a Principal Residence exemption of 250k from capital gains as she has lived in the home continuously for 30+ years. 

You must be sponsored by a principal broker in Oregon, as well.