@Abhilash Joseph  Investment property loans are typically going to have a higher rate than an owner-occupied loan, particularly for multi unit investment property.

The percent receivables is important along with the percent of units that are owner occupied for resale.  

@Layla Savant, an owner occupied primary resident would be foolish to convert his property to a rental for the purpose of doing a 1031 exchange. 

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.

Property management fees may seem like a cost that is easy to recapture buy "doing it yourself", but I will willing pay the fee to keep my rentals 90% + occupied rather than realize income on 75% +/- occupancy dealing with it myself.  

I don't know if there are HELOC lenders that'll lend on non owner occupied properties.I'm sure if you look hard enough your bound to find a lender that'll do a 2nd, but it's highly likely the rate they'll charge will make a refi look much more attractive.But that's not why I posted in this thread.

The strategy is to buy and hold a small multi-family (2-4 unit) property in the Portland-Vancouver-Beaverton-Hillsboro area to occupy and rent out the other units.

.#3 is doing well, and has had good success with keeping units occupied.

The catch is that the project will only make it through funding if it is occupied.

It will be more difficult to get a line of credit on a non owner occupied house.