What if your occupancy rate is 90%?

At full occupancy, the cash flow I just keep in reserves for repairs or help pay the principal. 

Its not my account, its not my SSN and its not my money up and until the end of that tenants occupancy and the funds revert to them or to the landlord for damages. 

Generally it's a mix between (a) spec builders, the type who specialize in doing in-fill lot's (b) investors, as it is a normalized flip strategy (c) owner occupants, especially in high desire neighborhoods, who are a-ok with taking on the project and even some are excited that they get to build a new home in often old neighborhoods. 

Many property managers tend to focus on physical occupancy rates, but what truly matters is the economic occupancy rates—the actual rent collected.

She responds back claiming that I am unnecessarily using ger occupation in the argument and am now starting to harass her.Her response message was all over the place and extremely unprofessional (I mean, I didn't expect any better).

When you go to sell, Montvale requires a certificate of occupancy so this issue has to be resolved in advance of a sale.Although I am not a lender, I assume you will not be approved for an owner-occupied mortgage on 5-units if it is a legal 4-unit without some type of mortgage fraud whether in reported rents, units, or another legal document or representation (very very large issue from a legal perspective with multiple arrests in the last year for anyone playing fast and loose).As far as the DCA, I would recommend coordinating your work with the city with the DCA.

You could build or flip less expensive units and sell them to your clients/occupants over time.

An investor can enhance returns in the SM all kinds of ways. 

Run the numbers as if you leased the property from him at 10% x the value of the home( not including 1,000 acres) in lease payments @60% occupancy.