Currently, it is being occupied by a tenant who plans to move out at the end of the year.I am seriously considering venturing into Airbnb, however, I am an out-of-state investor and would need to utilize an Airbnb turnover and management service company in the area. 

While it may not make a 5 unit qualify for an owner occupied loan it would reduce that partner(s) expenses.

Or will the lenders look at the duplex as an asset (once occupied by tenants) I’d appreciate any feedback.

occupied cash flowing and seller is open to financing it.

Hello, I’m exploring creative financing for a currently occupied duplex.

Does anyone have suggestions of best business type for owner occupied rental building in Illinois?

@John TeachoutYes John, I plan on occupying one of the units in the next purchase.

Once you close on the loan and finish repairs you can refinance the property but you do not have to wait to put in renters is the work is completed.If you were to buy a primary home using FHA the guide lines state you must occupy the home within 60-90 days and for a 12 month period. 

Fortunately, I was occupying the property at the time and knew the trades so was able to cut some costs.

Tenant PoolThe only way to consistently make money is to keep the property occupied by what I call a good tenant, who:Has stable employment in a market segment that is very likely to be stable or improve over timeHas a credit history with which you can evaluate the likelihood that they will performPays all the rent on scheduleTakes care of the propertyDoes not cause problems with neighborsDoes not engage in illegal activities while on the propertyStays for many yearsGood tenants are the exception, not the norm.