My biggest worry is putting myself in a situation, where people are occupying units, without pay, and without chance of vacating.

Hi Victor, as a first step I would consider reaching out to some local banks to get pre-approved for an Owner Occupied Investment Property. 

Tina,If this were at flip to a rental property, not an owner occupied home, you might have less resistance.

I would not advise you to do a deal like this with that many partners much less owner occupied.

My suggestion would be to find some deals, draw out the various scenarios such as 20% down owner occupied with no PMI, 3.5% down FHA with PMI, or 5% down conventional first time home buyer.

For owner occupied properties you'll need to move in within 60 days of closing to meet their occupancy requirement. 

If nothing else, $300 is a very cheap lesson to learn this.For example, I bought two duplexes, 3 of the units occupied, last year. 

I am currently looking to use an owner occupied loan to purchase a small multifamily (two-four plex).

Since he can’t do an owner occupied mortgage due to Frank Dodd, he put the house in a trust with him as the trustee.

I am currently looking to use an owner occupied loan to purchase a small multifamily (two-four plex).