My genuine interest in REI, along with positive market conditions in Seattle and low interest rates, led me to take action, as I recently purchased an owner-occupant condo.  

We are selling the building and if an owner occupant wanted to live there, they would not need sprinklers.  

Yep the $500 specials can be a pit fall if one does not approach then with a well educated eye, we are also looking at properties that are already rented, but will still get the full inspections plus check City occupancy certification etc.When I first found BP, I quickly realised how valuable this site will be, hopefully I will be able to give back, though I am not a forum junkie as my evenings are walking the dog, cooking dinner for the family, usually quoting work then if there is any time left, property searching.

Selling to an owner occupant, not an investor, you'll be in violation of several federal laws as you proposed the transaction/If you "stay in" some installment purchase, you can only sell the interest you hold, to a less degree, in other words, if you don't hold title buying on an installment contract, you could lease it and grant an option to buy, you can't sell on a sub-2 basis as you don't own it.If you assign an installment contract, you must have the original seller's consent, you can't create an assumption of a unilateral contract without consent.

Ask for market occupancy and rents.

Is it a retail flip, lease option to a owner occupant, or selling to another investor.  

I will purchase as owner-occupant, and transition it to a rental after the 1st year window of ownership has passed. 

Might work for a buy and hold investor, but then that landlord is taking on the risk of a subject to deal for a not-very-good deal.If you're going to try sandwich lease options to owner occupants, spend some time understanding Dodd-Frank and the SAFE act and the implications of that. 

My new occupant came from a rooming house, and before that was homeless, which is where I met him from advocacy work I do.We agreed, he and I, that paying the rent was better through a third party, automated.Can anyone recommend a reliable low fee way to do this?  

You did not mention where the engineering school was located, but if its located in the United States, investigate an FHA 3.5% down payment mortgage for 30 years with an interest rate of 4% max, which would require owner occupancy at least a year (you'll be there two years).