Is your plan to lie when you fill out the background check for the “occupants”?

@Brian Heimerdinger As stated above, it is perfectly acceptable for you to convert your primary residence to an investment property if you have fulfilled the occupancy timeline specified in your mortgage.

Another issue with MFRs is you cannot estimate you will always have 100% occupancy.

At that point, owner occupants are afraid to buy because they don't want to lose money and they may not be secure in their jobs.  

A graduate degree is quickly becoming the equivalent of an undergraduate in my occupation.

And I agree...my results are right about middle-of-the-road compared to other rehabbers I speak with all over the country...As for the past 6-12 months, deals have been tougher to get, as there seems to be a good bit more competition out there these days (other investors); in addition, the past 3-4 months have been very tough with a lot of owner occupants scooping things up for more than I'd be willing to pay.Our ROI hasn't decreased in that time, but only because we're more selective in our deals and we've been doing fewer projects because of it the past few months.That said, we've been keeping pretty busy managing rehabs for other investors...

Here is the breakdownProp mgmt 10% $869.00 Vacancy 10% $869.00 Repairs 7.5% $651.75 Cap Ex 7.5% $651.75 Lawn Care $150.00 Pest Control $65.00 Turnover Repair ($750 per- 2x/yr) $125.00 mortgage 6% APR $2,160.00 Insurance ( $3600/yr) $300.00 Taxes $351.00 Gas/Electric $1,400.00 Total Expenses $7,592.50 Total Operating cost (no debt service) $5,432.50 Income Rent (100% occupancy at current rate) $7,770.00 Income Storage/parking $- Income Other (Laundry+ water) $920.00 Total Income $8,690.00 Cashflow monthly $1,097.50 Cashflow annually $13,170.00 Although current rent is $455, a lot of the units are on leases that are less, so actual gross monthly income currently is $7770 from rents. 

Different states and areas will have varying tenant use patterns.So one investors strategy might work best in one state but not in another state or area.So you have to take what everyone's experience is with a grain of salt and see how it applies and works or doesn't work for your area.If you are just starting out most investors are taking on the most risk and yield possible if they are starting out with little cash.If an investor already has a bunch of cash and going into real estate then many are risk adverse.They want maybe a 7 to 8% annual return with an appreciation combo and do not want a headache to grind out to 12 or 13% or higher.Outpace inflation and grow more money than you use to live is the game there.Yes owning a tri or duplex can be easier to sell to owner occupant but if the area goes down hill you might not get a lender to loan there.Your property might be great but the others are trashed.This is why it can be an advantage to own a whole complex.You control all the tenants and upkeep for the place.Pro's and con's to EVERYTHING.No property comes without risk and a potential down side.The real question is WHAT TYPE OF RISK are you comfortable with and willing to take?

This, of course, doesn't factor in the latency of my money when it isn't loaned out, but it shows the power of leverage.In Texas it doesn't require a mortgage broker's license to do non-owner occupant loans.

But the Realtor wants me to sign and occupy by this Friday.So tomorrow morning I will offer occupancy of February 1.