When applying for the permit, there's an affidavit you must sign and notarize attesting to the 12mo personal occupancy, or else you received the permit fraudulently.So if you must reside in the home for one year, how does anyone flip a house or do reno yourself in Chatham County?

He said, Stewart I am in some serious trouble, I hired a property management company and they took occupancy from 16 of 18 down to 6 of 18, and they haven't rented an apartment in several months, I am bleeding cash.

Where as being in close proximity to summer/winter attractions can effect occupancy short term. 

Underwriting my deals more conservatively, stress testing the deal (increasing cap rate by 1-2 points, making sure the deal still pencils out at 65% economic occupancy, etc.), having ample reserves (6 months-1 year), etc.

In general, a vacant property is usually much easier to sell (because it can be sold to owner occupants as well as investors). 

Here's a link for more on requirements to do so: https://arvada.org/business/permits-and-applications/short-term-rentalLittleton is also an area where non-owner occupant is currently allowed, but there is talk of potential additional regulation.

When the building was granted occupancy I looked into a couple different routes of how it could be run.

Union City is also particularly sensitive about basement apartments: there was a program ~10+ years ago where many basement apartments were "legalized" to a third unit, but you'd likely not be able to get a certificate of occupancy today if you had to receive a new one because they don't comply with the current fire code (windows not large enough, no sprinkler system, etc.). 

What type of occupancy are they getting annually?

I'll add to Jay's points that owner occupants are back in force and buying some of those properties that would have previously been bought by investors squeezing that cash sales number even more.