I have been able to find a couple of options for this setup though, they just require separate leases for each room and sometimes 2-3 months of rental receipts as well. 

In the last 18 months various states have instituted new rules, regulations or laws related to (1) need for licensure to wholesale (2) restrictions on marketing of a property in which you do not have ownership and (3) disclosure requirements when dealing with a homeowner that makes it clear to the homeowner that the contact signed with the wholesaler is not a definitive “sales” contract, therefore making it less likely home owners will sign4.

There may be requirements to cover the trash service depending on the town.My first commercial loan was 30% down, 20 year term (adjusting after the first 5 years). 

Does anyone have experience exchanging their small multi family property into a single family home, use it as an investment property then move into it as a primary residence after meeting the requirements?

My role does not require any underwritting to deal presentation to the principals.

You could also use a Fannie May Home style renovation loan which a conventional loan and require 5% down vs.

I did do a precursory investigation into what requirements are and it looks like there might be some zoning restrictions, as well as permits required.

Permit eligibility is based on region (usually the west side of town) and density (quantity of surrounding STR's in the area) as well as percentage of landscaping and minimum parking requirements. 

We typically pay somewhere in the range of $3500 for a new, basic furnance, including install, if there are no other modifications to the system required.  

I understand this is not a requirement, but I have never received a damaged unit from an inherited tenant or any legal issues.