I was planning on living in it while doing the repairs.

At this stage of my life (71) years old and more concerned with estate planning than career advancement, my top priority is asset preservation on an INFLATION ADJUSTED basis.

Taking the primary residence from a 3 to a 4 bedroom, adding HVAC, new open floor plan, modern kitchen and bathrooms as as well as adding massive walk in closets in two of the four bedrooms.

They may want less than what you are planning to offer:)

@Mounish Thatikonda are you planning to do large rehab projects? 

@Eilon ShohamSTR and MTR can be profitable with the right business plan. 

Is there a way to protect myself and recoup any of my equity  (downpayment and any construction I plan to do) if the property by chance forecloses? 

If you don't want to occupy, there are other options that look at the income potential of the property and do NOT factor in your income, employment history or DTI but you'll have a significantly higher minimum down payment - plan on 20% to be safe.

I think my plan would be to stay on that course, not necessarily with multi units though. 

People literally believe this and plan their lives and investment approaches around it.