Refi the house so they can continue to live in it, they will get the best loans on their primary residence.

On the flip side, if you've got a bunch of Section 8 tenants living in a building that's in a neighborhood where a lot of the tenant base has good jobs, high credit scores, and are generally reliable people, you've got the most risky tenants in that tenant base and that ain't what ya want.

If you are buying to live in, you could also do FHA with a cosigner.

If you're going to start in a market you're eventually going to live in, I think that's a stronger case for that market."

It will be remote, but since you live there now, you probably already have connections who either already know the house or local friends to find you good people to service things as needed.  

P.S; We live in Wilmington NC so both markets would be "long distance" P.S.P.S there are no reasonably priced multi family properties local to us.

These units are perfect for owner occupants, and they are perfect for related living as you have described.

Strengthen Your ProposalDevelop a Business Plan: Include:Vision: Your goal of creating a micro-home community.Market Research: Show demand for affordable or small-footprint living in your area.Financial Projections: Break down costs, ARV, and anticipated ROI.Experience: Highlight your previous fix-and-flip and demonstrate your learning curve.Present a Solid Development Plan:What is the size and scope of the project?

I live in the Milwaukee area and want to get started investing locally but eventually want to branch out into other cities and states.

I'm originally from the area and have been starting to look at some properties there as I am living in New Jersey.