The best way to explaining this is for you to download an IRR calculator spreadsheet or build your own simple one and play around with one.For what its worth most deals I deem meeting minimal IRR standards is 13-15% but you have to dig a little deeper to uncover the real placements of cashflows and capitalization events... and then dig even deeper to verify the assumptions such as occupancy, rent increases per year, and what reversion cap rate was used.Again I don't look for IRR cause its manipulated a lot instead I look at total return on a 5 year basis.

@Joe Splitrock yes I have it in my lease“Any change in occupancy will require written consent of the landlord and may be subject to an adjustment in the amount of rent”Yes to how you laid it out on late payments Roxana, ILThank you for the time and feedback, always appreciate your insight

Owner/occupants also have the option to make their buildings "active" and use the large losses created by cost segregation and compliance with the Tangible Property Regulations against the business income.

It’s level of occupancy.

If so you can't get an owner occupant loan with someone living there that you'll have to evict.

They have a rental program for non-owner occupants on 1-4 units.  

To add another twist to this, it seems that Real Estate Licensees get special consideration as rental activities including acquisition, sale, and management of those rental properties may be considered NON PASSIVE (active) due to the professional occupation. -- I am a real estate broker. 

Most of them are going to be for owner occupants though which doesn't sound like a problem for you.Be prepared to pay for your mortgage though.  

I found listings  basically give  limited information about the property, such as a listing in Pennsylvania,  16 unit  for 1,600,000 the ad proceeds to it for me that the property has a 7% cap rate, with an NOI of 181,800, at 99% occupancy.  

I plan to occupy one of the units for a few years at least and owner occupancy is also a requirement for FHA/VA loans.