I'd say it's less than 5% though.First, I now only go through listing agents if I can't go to the owner directly.

Hey BP,I'm considering buying a property to first owner-occupy, and later rent out in the Bay Area.

In many states (sadly, my state is not one of them) you can do an "Assignment of Benefits" at closing and the owner can sign over insurance proceeds--I don't know if NY allows AOB or not.

I always push out of state owners to north side chicago B/A area where its very easy to manage and real life net profit.Using management companies and making significant net cashflow was a pre 2018 reality only.

(moderators,  if I am wrong delete one)I was the high bidder on a bank foreclosure auction,    I have attempted to offer the previous owner cash for keys and am getting the impression that she wants to drag it out and be evicted.   

The ADU was built as an in-laws quarters by the current owner, but we would want to rent it out separately.

Even though you are going to be the majority owner, remember that things can get a little wonky in business, and make no mistake, if you have 3 other "partners" in this deal, it is bound to happen at some point.

Owner Financing is a great way to break into smaller multi-family 4-10 units when a seller is willing to carry the mortgage for you up to a few years until you can qualify for a commercial / DSCR loan to refinance them out. 

@Chris McKay I have been researching some more plans and I came up with starting a holding company LLC as a parent company for each of the subsidiary LLCs that will on their own protect each property separately with this I will also be able to utilize an S-Corp which will be attached to my Holding Company LLC and each subsidiary LLC will transfer the funds into the Holding Company LLC to cut down on my self-employment taxes by paying myself a W-2 along with dividend distributions paid out to the owner aka myself throughout the year.

If this sort of thing has been tolerated in the past, it may not be a big deal to the tenant or the prior owner.