If it is cluttered buyers will have a harder time visioning themselves living there. 

In this case, you can use Rental Income from the units that you will not be living in and that income can count to help you qualify.FHA rates are going to be lower than conventional for you almost always, but FHA does have a 1.75% funding fee. 

They live in a semi HCOL area called Torrance (house is in a good zip code 90503).

Similarly, the sale ($575K) minus your adjusted basis determines your capital gain.You may qualify for the primary residence exclusion (up to $250K single/$500K married) if you lived there 2 of the last 5 years.

Guess my question is this — where will these employees be living/trying to live?

There are no crazy tiles, the countertops don't have aggressive veining, and there are no crazy accent walls in the living room.

well if I ever make it to the Smokies to see what the draw is  I will rent a condo then :)  I am just guess but I suspect folks that go there want to be in the woods and hear the birds and maybe some local mtn views etc.. or some sort of privacy they never get at home out east were there is not very much public lands close to where they live in the big city. ????

i do not however use it for heat mine is an AC only unit I believe not a heat pump unit.If you're whole unit is relying on one mini split for ac and heat that surprises me just given if you shut a bedroom door you'd not have heat from the split that I assume is in the living room. 

Co-living is going to grow and grow as time goes on (but maybe less so in my neck of the woods, to be honest).

Usually, this is a sign of stability and a preview of the types of people who live in the area.