I'm not an attorney, but here's what I would do:1) Identify what type of entity owns the properties.

In order to close on the property I have been advised to put at least 15% down for a duplex, find a private or hard money lender to buy the property outright or remove the kitchen, and the exterior door lock on the 2nd unit so the appraiser can have it identified as a sfh.

Risk, markets, personal rehab expectations are a few things that you'll need to identify as you create your personal criteria for your portfolio.  

Another thing is the contractor doing the work should have a tool to look at the wall and identify possible areas where there is a temperature differential where the insulation may have a void so they can go back and re-fill it if needed.

You wouldn’t be collecting rent up front, because your contract would identify a due date.

If there is a pattern to their reductions, find it, then offer 7 days before you expect the next reduction.

Since 2010 “blind pools” have had much more difficulty raising capital than those where a target property is identified.

As you've identified, you can put down less up-front as an owner occupant.

What that means is I love numbers and figuring out the patterns that produce results. 

There are several ways you can find good deals, one is straight from the MLS, there are a number of deals that pop once in a while, make sure you find a good agent that can identify these and send them to you. 2nd is through wholesalers but most of the time these properties are in terrible shape which makes them hard to get a mortgage, as they simply won't qualify the bank's appraisal.