Does it cover the property owner or is he or she responsible for a separate policy that covers their tenants running an STR business in the property.

You won’t be able to find a duplex for one unit to cover the mortgage but could possibly have a scenario where you pay yourself an affordable rent.What part of town or parts of town could you live in?

That way you are covered and you will earn a lot of respect.

I was wondering what all does the 203k loan cover?

Every time you acquire new property, you should maintain a reserve to cover the inevitable problems that pop up like vacancies, broken furnaces, or a tenant that trashes a unit and decides to leave three days after you close on the latest investment.In this case, I recommend giving them a very small increase, even $25, to avoid the vacancy.

I have many pictures of the renovation process if anyone cares to see them.

It isn’t my job to cover their employees salaries.  

At that price, I'm assuming you have some major rehab to do, but maybe not.Not an accountant, but from my own research if you use the IRA you need to have enough in that IRA to cover all the property expenses.

With that said, the brrr strategy may not offer much cashflow if you refi out at 75% of 360K, 270,000 mortgage would be covered by the 2100 rent but not by much.  

That is only $40 per month set aside for vacancy costs; it would take 10 months to have enough set aside in a "vacancy reserve" to cover the costs of just the mortgage payment for ONE month.