Also down payment required may be higher based off experience.

This would require hiring an attorney and create some long-term obligations, but may solve a number of your problems.  

Most lenders will require that you occupy a minimum 51% of the building in order for it to classify as owner occupied. 

Congrats - at the end of the day, learning all those lessons really require jumping in and "doing" and making the actual mistakes - no shortcuts and way to "learn" these by studying endlessly without making the leap

I have already reached out to My Real Estate attorney and he is going to be drafting the required paperwork to secure the loan against the property.

While the mix of business and friendship requires clear expectations and contracts, it offers a unique chance for collaboration with someone trustworthy.

No, in fact, in texas, a sellers disclosure is not required to be given for residential multifamilies  

They both require the same investment, $10k.Conservatively, you anticipate in 10 years that the property will not receive ANY appreciation.

To maximize the number of transactions you’re involved in you will need to:Be Top of Mind when they think about moving - which requires consistent reminders.Be seen as an Expert – which requires a consistent message and Evidence of Success storiesGain their Trust – which requires communicating integritySo, start out by listing everyone you know in an Excel spreadsheet.

A red flag is a warning for you to dig deeper.I recommend your offer to purchase include a requirement that the Seller provide all documentation and agree to sign an estoppel certificate (also called an estoppel form or agreement).