Dodd Frank deals largely with offering financing to an owner occupant, them being qualified, having the ability to repay, etc.  

The problem with why investors and agents clash sometimes is that agents know investors want a good deal but they may not understand the metrics you're using to determine what a good deal is and also they want to protect their reputation by not submitting a bunch of impractical offers for a given listing to a listing agent that they may want to work with in the future.A fully renovated home in great owner occupancy condition generally cannot be be low balled in most cases unless the seller had dire need to sell within a specific period of time but that may be due to the liquidity needs of the seller.

If there are 4 to 6 adults + kids, I think they will be above the occupancy threshold and you can reject them on those grounds.

If I'm understanding your questions correctly :~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~all cash purchase - refi within 6 or more months ( yes)  depending on rehab, your credit score , property reserve funds,   occupancy level, lender seasoning requirements, and etc.Most importantly contact your local lenders and determine requirements before making purchase.

I was wondering what people think about buying houses in an area where most likely the occupants are section 8 and the area has high crime.

You call the police when the occupant is doing something illegal, or is a physical threat to you or herself.This is pretty basic law enforcement vs. civil matter stuff.

Loans under $50K are a special product, even for owner occupants.  

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All the good ones get snapped up during the owner occupant bid period.

A year down the road, with 75% LTV financing in place, the ROI on your investment is near 100%, year in and year out – before consideration of tax benefits and likely NOI growth.As Bryan notes, you can also elect to sell when you've got occupancy up to >85% for 9-12 mths, as a 12-15% cap, scoring a huge gain.