Originally, I was looking for a "house-hacking" situation with either a small home + attached living space (basement apartment, etc), or renting out rooms in a home I own and occupy. 

His rent roll said that there were 24 occupied units and 21 vacant units but when I toured I discovered that only 6 units were occupied and there were 39 vacant units, his property manager had been lying to him.

It can be combined with both absentee and owner occupied, owner age 40+, 5+ year ownership, home value based on your market and the property type you are looking for.

As far as landlord tenant laws - check this out: https://www.ag.idaho.gov/content/uploads/2018/04/LandlordTenant.pdfMortgage rates currently are typically below 3% for owner occupied in case your are planning on a house hacking strategy. 

I think B & C are the best options because you were quick to fix the problem and the property is ready to be occupied again with no issues.

@Anthony WickThe other side is owner occupied and they would move out upon closing

I have extremely low DTI and it would only get lower incorporating rent for the housing I currently occupy.

Fannie Mae states the following:Fannie Mae’s April 3 clarification of the “Second-Home Rider” shows that homeowners are allowed to rent out a second home after one year of ownership and that short-term renting during the first year is also permitted under specific conditions The following eligibility requirements apply to second home Mortgages:·The Mortgage must be secured by a 1-unit property·The Borrower must occupy the second home for some portion of the year·The Borrower must keep the property available primarily (i.e., more than half of the calendar year) for the Borrower's personal use and enjoyment·The Borrower may rent the property on a short-term basis provided that the property is not subject to any rental pools or agreements that require the Borrower to rent the property, give a management company or entity control over the occupancy of the property, or involve revenue sharing between any owners and the developer or another party·The Mortgaged Premises must be in such a location to function reasonably as a second home·The second home must be suitable for year-round occupancy with the following exception: a second home with seasonal limitations on year-round occupancy (e.g., lack of winter accessibility) is eligible provided the appraiser includes at least one comparable sale with similar seasonal limitations to demonstrate the marketability of the subject property.

Sometimes, there is a clause that the property must be owner occupied 

The mortgage rates are different for owner occupied vs investment.