Based on the down payment it sounds like it will be owner occupied, unless it's not a conventional loan.If owner occupied with excellent credit, solid income with low DTI, that rate is very high!!!  

When you sell a property your proceeds at closing generally will be 8-10% below the sale price due to 5-6% realtor commission, settling escrow accounts, county deed recording fees, etc.At 80% LTV you can get the mortgage insurance payment dropped, you open up the possibility of other non-FHA and non-owner occupied financing, you give yourself a cushion to sell if needed, and you reduce the possibility of being upside down if values pull back.  

In this type of agreement, you will usually be responsible for paying a percentage of the increase based on the amount of space that you occupy.3.

That will cashflow but that’s a big apartment to owner occupy.

Some HOAs limit owner occupied vs rental units %.  

The notes are on residential, owner-occupied properties.

All purchased with a 30-year fixed loan at 4%The first residential unit will be owner-occupied.

I self manage (for now)  owner had the property for 20 years, didnt manage it well, no one is screened properly. my wife and I must occupy the property so one must go. this is a class C community. inspection shows the systems and roof of the home to be in good shape. what would you do?

First, there are no and low seasoning options for non-owner occupied properties where income verification is not required.Loan amount and Loan to Value are key here. 

You could do a 1031 exchange at this point and roll the proceeds into another property.I think I would sell now when you wouldn't have to pay capital gains taxes.You could use some of these proceeds to buy another rental property and take advantage on a low down payment on your next owner occupied property.