If you purchase a multifamily property, lets say 4 units, and use FHA loan for the lower down payment benefit but the entire building is occupied, what would happen?

Do I need additional policy for the first property? 

In your case, since you reduced the reported amount on the 1099-S to reflect the actual amount you received after the payment to the program, you might want to have the documentation from the county's request readily available.While it's not mandatory to submit the documentation with your tax return, having it on hand can be helpful in case of an audit or if the IRS requests additional information.

Additionally, I have been looking into section 8 investing around the area and does anyone know if manufactured homes qualify for section 8 housing?

Tenants taking ownership leads to better care and benefits both parties.Prompt Resolutions: By promptly addressing common maintenance issues, tenants can prevent minor problems from becoming serious and costly.

I think a sauna is a great addition to any STR for obvious reasons... the liability side is something a good insurance broker should be able to help you navigate. 

Rates are coming down right now and a cash out refinance offers additional benefits that a Heloc cannot not offer.Heloc cannot be used as an "Asset" or for PITI reserve requirements when buying another REI.Heloc is an open end mortgage aka debt obligation and can cause DTI issues.Heloc is in 2nd lien position which means you cannot borrower more until you pay off the Heloc.Cash out refinance offers a 30 year versus Heloc typically 15-20 year higher rate.

Additionally, it does not address your immediate need for an accessible living space.Return and Live in the House: Living in your property eliminates the rent you're currently paying, and you'd still benefit from rental income from the other unit.

@Jackie Linne - SM LLCs will report directly on your personal return, some states have additional filings and fees you should look into.

Yes, I would use VRBO in addition to other platforms.