In every case I can imagine, you will have better access to financing (lower rates, less money to be put down, easier qualifications, etc) if you occupy the property yourself.3) Tax advantages.  

@Justin HerringtonWhile Thorold does not give a maximum occupancy per dwelling unit in a direct manner, it appears to define any building providing lodging to more than four (4) occupants as a boarding house:“boarding house” means a building in which lodging is provided for more than four (4) persons in return for remuneration or for the provision of services or for both and in which the lodging rooms do not have both bathrooms and kitchen facilities for the exclusive use of the individual occupant;In turn, they restrict a rooming house or lodging house (but never marry definitions to that of the boarding house) as follows:Where a dwelling unit contains rooms intended to be used in conjunction with a rooming house or lodging house, the occupants may share a single bathroom provided that: (1) not more than nine (9) persons occupy the dwelling unit; (2) for each additional nine (9) persons or part thereof, there shall be an additional toilet, handwash basin, bathtub or shower; and (3) access to the bathroom can be gained without passing through: (a) a habitable room of another dwelling unit; or (b) an open area, which is not normally heated during the period of the year which heat is required by article 2.22.3 of this by-law.So, it appears to come down to whether boarding houses are permitted where you property is located (and whether they need to be specifically licensed), unless your building would be seen as a non-conforming duplex.This is the question, I believe Thomas was asking.

For example.Investor lends 100k for the purchase of a 500k duplex.Homeowner lives in one property and rents out the second property for 1500 a month.Pays the investor 834 a month (10,008 annually) and keeps the remaining 666 from the income property.The investor is getting a 10% roi while the prospective owner is getting some income from the rental property, access to the housing market (and as such all of the associated tax benefits) and doesn't have to pay mortgage insurance.Of course there would need to be some sort of security and the lender could have their name on the deed?

I know, I was one of them, - To my benefit I can say I was one of the cautious ones who did do their homework, and thus landed up buying in relatively good areas.Having said that, and even with the knowledge that I probably overpaid for my first two properties,  I am still getting a good return and have gone on to buy more properties in Detroit.Like anywhere (and in Detroit more so than other place) it is really all about the people you are working with on the ground, and the local knowledge you have or have access to.

REO agent is a medium for the bank to put it on MLS.However, I am a realtor and can access MLS and REO websites, so if your not using an agent to represent yourself you may have to get ahold of the REO agent which can be difficult. 

The MLS access is necessary to find good deals I hear and besides my CPA/broker recommended to go for it and offered to list me under his RE brokerage...Thoughts, advice?

If you don't have MLS access and some experience you do have to put some faith into that, but doesn't sound like you got justification for it.Also sounds like you took an agents estimate for repairs.  

Read Access by landlord below:https://tn.gov/consumer/documents/UniformResidenti...

I live right across the street in some apartments and the area is little to no crime, convenient access to freeways and major roads.

For quick access, here is a link to the page.