They're in the area, can scope out properties in person, face to face with people, they may very well be the people maintaining the property.

I've done physical labor and 40+ hour a week jobs.

If you are not legally entitled to possession, then you are not entitled to keep any rents you collect if you do happen to physically take possession.

I think most folks would be wise to stick to good performing paper... sleep well be well and do not take so much risk.. at least that's my personal thoughts

Highest and best use may very well be to tear down 3-4 of them and throw a sign up "build to suit".  

You can look online, but realtors open up access you cant get online both physically and information wise. 

However, being physically away from the local community, it might be hard to see slow and subtle changes in the neighborhoods and adjust my portfolio in time.I want to get in the investor's game sooner than later.

Granted, my quick analysis on my situation could very well be WRONG, and that is why it is great to get people's thoughts here.  

Let's say the seller agrees to my offer... where and how do I get the actual physical contract and which one should I use?

Does "owner occupancy" mean that bills and other docs must have the new address or must I have physical proof I live there (clothing, furniture, x amount of water usage, etc)?