Because 0-5% down does NOT happen unless you are owner occupying the home.

We have taken over LOTS of occupied units with under paying tenants.

You're only limited by your beliefs.Practically speaking though, 2-4 unit multi is very very doable starting out, especially if you are willing to owner occupy.

Hello Dana, For that purchase price in Brooklyn, NY, you could be looking at considerable unknown expenses at this point.If the property is occupied, you'll have to factor in attorney fees and holding costs while you wait to gain access to the property.Furthermore, you could be facing additional costs related to title issues: open permits, violations, liens, judgements, etc.

Other than that it's a pretty clean package. 200k down, 720+, 60> ltv owner occupied.  

A friend of mine bought some houses from them that he thought were occupied and running smoothly because rent checks always came through on time.

Because the property tax as a non-owner occupied property is about 3-4 times the amount of a owner occupied property.  

If you had also spend money on renovations and improvements while occupying those should have gone into service then as well. 

@Austin Williams yes you can do a 100% cash out refi on your existing home with a VA loan, but keep in mind that you would need to finance it as a primary residence, which resets the 1 year clock that you need to occupy the property.

Being owner occupied means getting the lowest interest rate, and a conventional or fha loan.