There are some home loan options that require as little as 3.5% or even 0% down.

@Helena Goyvaerts rate for a 30-year fix would be at least 8.5% with some points (1% of loan amount).Most DSR lenders have a minimum credit score requirement from the applicant.

We typically pay somewhere in the range of $3500 for a new, basic furnance, including install, if there are no other modifications to the system required.  

I'm also pretty handy and would be open to purchasing a property that requires some minor work before tenants can move in.

I understand this is not a requirement, but I have never received a damaged unit from an inherited tenant or any legal issues.

Not many people dig too deep on the actual requirements so kudos to you.

Does anyone have experience exchanging their small multi family property into a single family home, use it as an investment property then move into it as a primary residence after meeting the requirements?

You could also use a Fannie May Home style renovation loan which a conventional loan and require 5% down vs.

Permit eligibility is based on region (usually the west side of town) and density (quantity of surrounding STR's in the area) as well as percentage of landscaping and minimum parking requirements. 

I understand I cannot legally require them to respond, unless the notice specifically requires it, like for instance, a notice of entry, but it's making it difficult to manage the property, and I'm not sure how to proceed.