Employment checked out so I accepted 1mo deposit and 1st mo rent and gave keys and we signed mo to mo lease that authorizes occupany by their names, and states a total of 2 occupants.

1)  No, you will have to pay all cash2)  You need a title search, or do yourself to determine liens3) The best you can do is look in the windows, or try and convince current occupant to let you in.  

You can look up FHA loan gifting guidelines and even guidelines for non-occupant co-signer as I don't think you meet gifting requirements.

Can I now deduct the following expenses which I would like to complete before occupancy?

I have bought and sold a few houses but only at retail and I was the owner-occupant.

What is your opinion on waiving the current use/occupancy/zoning restriction investigation?

If I purchased a apartment complex that has good occupancy and is undervalued (I have found some), use transactional funding to purchase then refi with private money loan, I think it is possible to get a property next to no money down maybe even getting some cash back lol Let me hear some feedback on this and see if it's a great idea!

Without experience the building at 90% occupancy could go down to 65% and then the seller who financed you has to foreclose and is worse off then when they started building it back up again.Hope it helps.

I am going to be an owner-occupant living in the upper unit.

It is easy to puff a property and get 100% full for a month or two and then dump a problem to a buyer. 6 to 12 months of proven occupancy or longer and payments is the real measuring stick that should be used for averaging.I see landlord pays some utilities.