The next property will be another owner occupied.

@Zen Lenon, I'm not dealing with HOA's at scale but I agree that MTR owners need to check their HOA rules to make sure the strategy works for them.

Question: I'm an agent trying to deal with an owner on a small commercial prop says once a buyer signs LOI they can get any relevant leases do their due diligence as well as do their inspection before going to contract.

As a rental strategy for non owner occupants, it absolutely is a fantastic way to generate the highest return, that's true.....but also, and most importantly, your screening has to be on point, and without that, it won't be as effective because one bad roommate can ruin the environment for the other roommate tenants. 

After 25 months, If they can prove that they lived in the property for two of the past five years, they can sell it as an owner-occupied residence.

So a room used for laundry that is 100 sq ft (quite common) costs the owner about $72,000 over the course of a decade (in today's dollars). 

Hard money is a type of business loan for non-owner occupying investors.

For RE owners, death allows you to pass assets to your heirs and step up in basis, effectively eliminating recapture.

I also still use it as an owner.

Alternatively, you could consider seller financing, which could provide you with a steady income stream while selling the property.As a real estate investor, realtor, and owner of a construction company near Texas A&M (College Station/Bryan,) I'm happy to help in any way I can.