Most of the area it’s only allowed WHILE you are living in the unit as your primary home.

I also never looked at it as a way of quitting my job; to me, I think it would be more productive to just find a more profitable way to make a living that you enjoyed. 

Also, the state of formation is likely where internal disputes would be brought among LLC members, so if you and a partner and/or spouse live in CA, you probably want to arbitrate in CA if the two of you had a disagreement.

We are planning to live in the owner's unit and tenants above have lease that is expiring mid 2024.

I also grew up in Cupertino and lived in Palo Alto Napa valley prior to Oregon..

My question is, to finance my first property, should I finance it under an FHA and live in one of the units for the year?

Some advice:If you are going to live there make sure you spend a lot of time down there first if you haven't already.Bank financing is impossible for non residents/citizens. 

I live in a town of 128k only, in Abilene, TX.  

I live in NY, looking to get started here and I see properties being fixed up all the time.

Preferably within driving distance, but I live close to the SC/NC border anyway.