Equivalent to having a 620 FICO and putting 5% down for an owner occupant. 

Think about how each property will photograph and how best to present its desirable features.If it photographs extremely well (Hire a professional with great lighting, and have it photographed at day time and at night time), has desirable features and you promote it those 3 ways, you should have a strong occupancy rate through the year. 

What exactly is “normal wear and Tear”/ The definition is the deterioration of the property that occurs during occupancy where the tenant cleans regurarly and cares for the premises reasonably.

I recently gave a speech/talk about this very idea and had a few people ask about the occupancy requirements.

The implied warranty of habitability requires landlords to maintain their rental units in a condition fit for the “occupation of human beings.”86 In addition, the rental unit must “substantially comply” with building and housing code standards that materially affect tenants’ health and safety.87A dwelling may be considered uninhabitable (unliveable) if it substantially lacks any of the following:88• Effective waterproofing and weather protection of roof and exterior walls, including unbroken windows and doors.• Plumbing facilities in good working order, including hot and cold running water, connected to a sewage disposal system.• Gas facilities in good working order.• Heating facilities in good working order. • An electric system, including lighting, wiring, and equipment, in good working order.• Clean and sanitary buildings, grounds, and appurtenances (for example, a garden or a detached garage), free from debris, filth, rubbish, garbage, rodents, and vermin.• Adequate trash receptacles in good repair.• Floors, stairways, and railings in good repair.In addition to these requirements, each rental unit must have all of the following:• A working toilet, wash basin, and bathtub or shower.

What is the local area occupancy?

@Manuel AngelesThis is a great strategy to get a good cash-flowing asset for little cash while simultaneously taking advantage of record low interest rates.For conforming loans where you get the owner occupant advantages it's only for 1-4 units.  

As an owner occupant in Oakland I can give notice to the existing tenant (this would be difficult or impossible if you were just an investor) in the 3 bd unit and rent that to myself for market which is $4k (I pay $3.6k for a 3 bd 2 ba condo down the street with 2 parking spots in Oakland currently with my brother and this place is much larger and overall better location wise. $4k is conservative to be honest, place could probably go for $4.3k-4.5k.).

We also want to get copies of any leases of tenants, proof they have been paying, any Certificate of Occupancies, and also proof there is a security deposit. 

And no, a lender won't allow you to purchase a home under occupancy requirements if you intent to move into it at some point.