I have friends in Draper who have close to 100% occupancy most of the year and have had no trouble from the city.

Rental Agent shall use its best efforts to ensure the operation of all amenities in the Property, such as internet access, satellite or cable TV access or fireplaces as applicable.Rental Agent shall not be held responsible for such items failure to work, but will make every effort to correct any issues as reported as quickly as possible.Guest acknowledges that use of amenities such as fireplaces, lake, dock, decks, and the like may be potentially dangerous and involve potential risks if improperly used, particularly with regard to children and such use is at the Guest’s own risk.Guest shall use the Property for residential purposes only and in a careful manner to prevent any damage or loss to the Property and keep the Property in clean and sanitary condition at all times.Guest and any additional permitted guests shall refrain from loud noise (especially after 10PM) and shall not disturb, annoy, endanger, or inconvenience neighbors, nor shall Guest use the Property for any immoral, offensive or unlawful purposes, nor violate any law, association rules or ordinance, nor commit waste or nuisance on or about the Property.DEFAULTIf Guest should fail to comply with the conditions and obligations of this Agreement, Guest shall surrender the Property, remove all Guest’s property and belongings and leave the Property in good order and free of damage.No refund of any portion of the Total Rental Fee shall be made and if any legal action is necessary, the prevailing party shall be entitled to reimbursement from the other party for all costs incurred.ASSIGNMENT OR SUBLEASEGuest shall not assign or sublease the Property or permit the use of any portion of the Property by other persons who are not family members or guests of the Guest and included within the number of and as permitted occupants under this Agreement.

our occupancy rate is 70%.

Sure there are some houses being build by owner occupants, but not really developers.  

I assume by income from occupancy but it reads like the business was suffering.

Since I am out of state, I am mainly looking for the quality of the tenants and a good occupancy rate area.

Or get started by owner occupying, improving and selling on, and use those funds to begin your BTL purchase.Lastly, buy as an owner occupant and rent other rooms out to increase your income; save that up for your future deposit.  

The requirement is that you must intend to occupy for 12 months and can only purchase one HUD home as an owner occupant every 2 years

I get a call from the lender today (NFCU) telling me that underwriting cannot approve the deal because the HOA has an inadequate budget, high investor occupancy concentration, and high delinquency.

The formula is (Gross Revenue x Occupancy Rate) - ALL expenses = NOI.