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.Download BP’s newest book here some good due diligence in Chapter 10.

In great detail they will go over the rules pertaining to owner-occupied properties with respect to equity skimming, and how to avoid running into issues with them and subsequently the attorney general.And yes, it is a great opportunity to meet other real estate investors in your area.

If you do not use a broker, a good attorney can also guide you through the transaction.You absolutely have the right to look inside every unit, occupied or not.  

At the highest level we are buying a 3 family house where we will occupy 1 unit and rent out the remaining two units.

Is it better to purchase already occupied units?

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.Download BP’s newest book here some good due diligence in Chapter 10.

Primary mortgage will allow you to be more flexible with down payments and rates since you are occupying the unit.

Quick question, is it an absentee owner or owner occupied list? 

The down payment on a conventional owner occupied duplex is 15% minimum. 

Some jurisdictions allow a owner-occupier to rent part of their own home, but it doesn't sound like that's your situation.You might inquire whether the property could be rezoned (if it's, say, adjacent to other MFRs).