If the property has recently been renovated I would definitely buy occupied because it reduces your risk and increases your cash flow right out of the gate.

And by evolving into Out-State holding's, now your reducing risk exposure from diversification of market deployment. 

The criteria is there for a reason, to ensure a successful tenancy and reduce your risk.2.

@Samuel Coronado exactly and what happens when they change the program or reduce the assistance, you're completely at their mercy.

We sold a Triplex last year for $505k and a recent Duplex for $421k+/- both received healthy seller concessions and planned to be owner occupied utilizing rents from the other units to reduce their costs of living.

Why does he think splitting up the property sale will reduce capital gains? 

However, for higher-value investments, like a $4M multifamily property, the additional protection offered by separate LLCs could justify the costs.

The ownership and use periods do not need to be consecutive.Exceptions to the Two-Year Rule:If you're selling due to a change in employment, health reasons, or other unforeseen circumstances, you may be eligible for a reduced exclusion.In cases of unforeseen circumstances, the IRS may prorate the exclusion based on the time you spent in the home.In your situation, if you sell the property before meeting the two-year ownership and use requirement, you may not qualify for the full exclusion.

They do a lease between you and ALE but add the option if the tenant needs to stay additional months they have that option but the tenant will then be paying the rent.

I have rental properties and the property management company direct deposit my rental into my bank account instead of naming the properties by address, she just put the property management company name in the additional income.