If you find a cash flowing MF in an area a bit further from your location that is already occupied, you may qualify for this type of loan. 

It has a single tenant, who occupies the whole building.

With that strategy in mind, your best bet is likely to get a conventional, owner-occupied loan so you can put as little as 3.5-5% down.

If it is the normal stuff I would let it be and plan for the needed repairs to get it occupied. 

. - and using this in conjunction with our own money for an owner-occupied MFH? 

The downside is the Mortgage insurance that is there for the life of the loan however once you reach 80% LTV you can refinance into a conventional which will remove the Mortgage insurance.If the plan is to get a non-owner occupied loan then you will need 15% for a 1 unit or 25% down 2-4 unit.

Does any of that change if I'm planning on owner occupying it?

An out of state friend wants to partner with me in a SFH which I hope to occupy as primary residence for house hacking purposes for certain amount of time.

I love living for free and the low down payment e=requirements of owner occupied homes.

A friend of mine is selling me his 4 bedroom 2 bath condo which is currently occupied.