Break out single family/condo; then 2 units then 3-4 units all have different rules. 1-2 units is far easier to get approved verses 3-4 which have extra conditions to ensure that the whole project cash flows with market rents minus the one owner occupied unit. 3-4 units you need much larger down payment - as in no 3.5% downSecond home programs are for one unit types: SFR/condo/townhouse.Owner occupied means you live there and your insurance policy matches.

You will not get a conventional loan like owner occupied with lower down payment etc. you can get a loan but you will need 20-25% down. 

There may be pre-payment penalties from different lenders.

Is the FHA/Low Down Payment type product still the way to go?

We all have a human side but at the same time, if they can't afford my terms and they have proved that they have already missed payments to other landlords, it's a super easy decision.

The mortgage payment is going to hurt us without a tenant, so we really need to get this moving.

Live in them for 2 years or long enough to save up another 5% down payment and repeat. 

The three pillars that qualify a DSCR loan, your credit score, loan to value, and the DSCR score ( gross rent / PITI(a)) - getting preapproved should be no problem as long as you have enough down payment, usually 20%, closing costs, and reserves. .

Build its credit by opening accounts in the LLC's name and making timely payments.

@Jacob Hancock-no reason to start with a new build - way too much risk and complexity-start with a house hack with a low down payment loan-if it goes well, do it againgood luck