I would occupy one of the units while I rent out the others for income. 

I spoke with the property manager about this, and she said the board doesn't enforce it, it's unenforceable (apparently the development period has passed so it's no longer a valid rule since it said DURING the development period specifically; she said it was requested by the developer to prevent investors from buying the homes and renting them out initially which would decrease resale value) and they have no intention of enforcing it, in fact, they want to take it out because they'd rather have the houses occupied than empty, which causes other problems.But she also said that they will actually be meeting with several home owners to discuss as some want cap or outright ban.

If you planned to use a 3-year term, variable rate mortgage with a 30yr. amortization, you still have to qualify based on the 5-year fixed with 25yr. amortization).Standard downpayment is 20% - there are high ratio, insured mortgages available to Canadian citizens for owner occupied properties which have a 10% or 5% down payment.Mortgage interest on an investment property is a deductible business expense as it is in the U.S.A.  

If you are purchasing a multifamily with one water meter you can request the copies of the water bills to see the usage when all the unit are occupied and in the summer vs winter.

Long term tenants, 2 bedroom apt, so livein owner occupied is perfect.

On one hand they are going to owner occupied, but on the other hand will it drive value down?

Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbookConsider checking out HUD homes for small multi's owner occupied gets first crack.

Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbookConsider checking out HUD homes for small multi's owner occupied gets first crack.

unit was occupied both sides of duplex coe.

I started with a 4-plex as an owner occupied.