He received a preferential owner-occupant loan, and he's supposed to live there for a year, plain and simple.

You'll need a little more information with an STR such as average daily rental and occupancy rates.

Then again, 26 Storrow St, U26 was a 2 bed 1 1/2 bath that was a bit smaller at 976 sq ft, also in average condition and sold at $123,000.If it were me, I would not be interested as an owner occupant. 

For instance, you can spend between 700-900k on an Ilikai unit, rent it out short term for 200-300 a night depending on the season, making a gross income of around 5-7k a month (75% occupancy rate).

Freddie requires 90 days of 90% physical occupancy to refinance, trailing (so it has be at least last 3 prior months).  

Whatever the FHA loan requirements are....income, credit, and occupancy...you will also have to meet those requirements as well.

There were different contractors doing everything she complained about.Handing the judge the Certificates of Compliance (Permits when they are inspected at the end) and the New Certificate of Occupancy pretty much ended the whole thing. 

(A) A landlord who is a party to a rental agreement shall do all of the following:(1) Comply with the requirements of all applicable building, housing, health, and safety codes that materially affect health and safety;(2) Make all repairs and do whatever is reasonably necessary to put and keep the premises in a fit and habitable condition;(3) Keep all common areas of the premises in a safe and sanitary condition;(4) Maintain in good and safe working order and condition all electrical, plumbing, sanitary, heating, ventilating, and air conditioning fixtures and appliances, and elevators, supplied or required to be supplied by the landlord;(5) When the landlord is a party to any rental agreements that cover four or more dwelling units in the same structure, provide and maintain appropriate receptacles for the removal of ashes, garbage, rubbish, and other waste incidental to the occupancy of a dwelling unit, and arrange for their removal;(6) Supply running water, reasonable amounts of hot water, and reasonable heat at all times, except where the building that includes the dwelling unit is not required by law to be equipped for that purpose, or the dwelling unit is so constructed that heat or hot water is generated by an installation within the exclusive control of the tenant and supplied by a direct public utility connection;(7) Not abuse the right of access conferred by division (B) of section 5321.05 of the Revised Code;(8) Except in the case of emergency or if it is impracticable to do so, give the tenant reasonable notice of the landlord's intent to enter and enter only at reasonable times.

As you stated, it does give a different result.For example, on a bigger scale, say the yearly income from the Airbnb rent is $100,000 (~$421 avg nightly rate at 65% yearly occupancy).

I'm wondering if anybody that owns property in the Avondale area of Jacksonville has put their rentals on Airbnb or used them as a short term rental for traveling nurses/military/etc, and what has your occupancy been?