This home is presented and priced in such a way that only owner-occupants are likely to show interest.There is bound to be houses in the area for HALF that price (yes, needing some work, but not $60k's worth) that would STILL generate close to $1000/m rent - thus getting closer to that sought-after 2%.

What do they see them selling for per unit, what is the market occupancy rate.

Hi Marcela,I'm not sure how it would work with the two-unit property but since you're an owner occupant you should be able to pull out a home equity line of credit (HELOC) on the property without refinancing.

Once the build and/or remodel is completed, most policies predicate that you have 30-60 days to obtain regular insurance for the premises based on what type of occupancy it is; ie, if you are moving into the property, then you would get an HO (Homeowners policy), if it's a rental, then you would obtain Landlord policy or a Dwelling Policy to actually cover the building (since you own it, but not the contents, since presumably, the tenants should obtain renter's insurance to cover their items).

The 2nd option to use my VA loan is to purchase some land and build a 4-plex as a owner occupant.  

It is better to buy at the worst point of occupancy than the best.

I have begun looking on both sides of the Hudson, and at this point, I am just trying to find a market to focus in on while I try to fine tune my plan.For now, I am looking with the intent to rehab and flip, either SF or 2-3 family (after occupancy).  

That's called occupancy fraud. 

Like many owner/occupant investors Im trying to bid on cheap homes and foreclosures (cash buyer), and would like to find a Realtor who will help me handpick homes, and help to pursue the deals I make offers on, and maybe help to educate me about buying @ auctions if thats possible.

@Jennifer A. the flip market has become very challenging because people (owner occupants) are willing to buy pretty much anything that they can get a loan on.If the property can't get conventional financing there are many flippers and want to be flippers that will bid up the price.