How many lots occupied and what were the lot rents?

Basically, you're saying your intent is not to move in, but with owner-occupant loans for lower downpayments, you will sign a statement certifying your intent is to occupy the property. 

Quote from @Isadore Nelson: I’m considering acquiring an occupied foreclosure property—a two-family home in Brooklyn, NY—and I'm hoping to connect with anyone who has experience in this area?

Fully occupied.

There are significantly less opportunities for HELOC on non-owner occupied but there are some (you would likely need to investigate to find a few).  

We are actually thinking about moving into the smaller unit. we are thinking if we should rent the main unit for long term rental or STR like airbnb but im afraid with airbnb, the non occupied days we may miss out on cash if its not rented out. 

Additionally, the right of redemption only applies if the property was owner occupied during the 90 days prior to the sale and this is not the case here. 

His companies (which he is now trying to distance himself from) and he sold properties owned by other entities, received money for renovations/repairs which were never made, and sent investors $ from supposed rent payments for properties that were uninhabitable and vacant under the guise that they were occupied/performing.

Any ideas how to lower this or use it as a owner occupied property?  

.* FHA loans require both parties to owner occupy for 1 year* A 203k loan is not a first time buyer program, you can own a home and still use the program as long as you live there* The loan must be made to a person, not an entity.