I call it the Kentucky Classic.

My biggest suggestion is to go meet with the city in person as that is much more effective than calling in.

So you will want to make sure to vet that.

I want to occupy one of the units, my preference would be the 2/1 so I can collect more rent from the 3/2 to go towards my mortgage.

Deciding what to invest in can definitely be overlwhelming since there's so many roads for real estate.

So which of these houses should I live in? 

If it was me I would allow the tenant to handle the situation, but since you are asking the question, I would say an addendum is probably a good idea either direction you decide to go in, just so it's clearly spelled out to everyone.

You might be in acquisitions in bulk so the question is valid, but not for the majority of investors out there who always should see a property before making an offer.

So most of my clients implement and STR strategy with the option to MTR as back up. 

One Point is 1% of the loan amount, so if your loan is 300K, then one point would be 3K.