We are also seeing some multi-family being sold for appreciation and debt pay down now.  

If you mean to legally acquire the property after the tax sale that depends on the rules in the state you are investing.

> I am able to evict based on my zero tolerance for criminal activity addendumI try to avoid eviction - Once the lease is ended early under the DV laws, the tenants cannot remain legally and hopefully they all move out willingly.

We would do it for a 16% annual rate and $500 fee at closing. 70% LTV Borrower incurs all legal fees. 

@Menalik ArcherYou might want to listen to @Joe Fairless podcast #1054 with @Amy Wan from Bootstrap Legal for some thoughts on how to stay out of troublehttp://joefairless.com/podcast/jf1054-getting-paid...Cheers!

You could always find your investor another property to take his mind off of this one.At any rate, i'm just offering a couple of points, it ain't legal advice, and it's not meant to circumvent your DB, or the agencies legal team, or the state of FL.

Our current residence is paid off and we have no debt. 

There are a lot of financial planners out there who will tell you to pay off student loan debt before investing in RE.

Fully rented.I'd be interested in purchasing if:1) I can owner-occupy both the first and second floor apartments (the footprint is small and I'd like to turn it into a single family space)2) I can make sure the basement apartment is legally habitable.Can I even legally do this?

Investment properties are typically lended on based on three factors: property value, borrower's FiCo, and debt service.