So if I pull permits and my work passes inspection, is there going to be an issue I’m not aware of?

With rising home values and relatively low entry prices compared to other metros, Indy continues to be an attractive spot for investors.

I want to occupy one of the units so I can get an owner-occupied loan and only have to put down 3.5%.

You should definitely check out Avery Carl's BiggerPockets book "Short-Term Rental, Long-Term Wealth" https://store.biggerpockets.com/products/short-term-rental-l...There is a lot of amazing insight into everything to think of while operating an STR.

I am an agent myself.

If you want them out, negotiate an early departure.  

I would not reccomend them at all in you are in an area of with alot of moisture or rain.

Working with an experienced realtor / broker who knows the inside and out of these type of programs and has contacts over at these companies, will help your efforts significantly.  

@Scott GreenPay an attorney in that state you want to invest $200/hr for 10 hours and you will learn 1000x more information on tax sales

Once they find an opportunity, they invest in the deal, and their obligation is usually over.