I am prepared to inherit tenants, provided they pass a screening process, but I need one unit available for myself to live in.Should I just cross any fully occupied properties off the list and continue searching? 

We are cash flowing 1k a month, with all units updated and occupied.

-EvanYou should analyze the multifamily to see if it will cash flow if it's not owner occupied & if so by how much.

I'm planning to move to the area myself and would love to buy, occupy, and then convert it to an investment property after ~1 year.

This is an important tool for anyone buying a tenant-occupied property.

My guess here is that you would be responsible for capital gains AND depreciation recapture on the non owner-occupied side IF you claimed depreciation loss on it.

Keep in mind that NOO has fewer restrictions that Owner Occupied, so make sure the broker is looking at the right matrix.

Does anyone have any referrals for NEPA based manually underwritten - owner occupied loans? 

Unfortunately, for investment properties that you are not occupying, there will be no easy way around the 25% down payment.

It sounds like the issue is that your current duplex was purchased with an owner occupied FHA loan.