If you were caught not living there that would break the terms (to put it lightly): http://library.hsh.com/articles/homeowners-repeat-buyers/occupancy-fraud-risks-not-worth-the-rewards.htmlIf you don't plan on living there you'll likely need to put 20%-25% down with a conventional loan. 

I live in Palm Beach county and am looking for light industrial/warehouse/mixed use properties.

So they set all of the gold cars they saw in the parking lot on fire.No caption necessary for this toilet from hell.This is what a kitchen can look like when a low income tenant moves out of it.This is what a backyard can look like when a low income tenant moves out of it.If tenants in these tough neighborhoods don't have yards, don't worry they will light off their fourth of July fireworks in their bathrooms.Don't worry though.

That is, if you trust them not to light something else on fire or set off the smoke detectors.

I would imagine $45k would only cover a light remodel for each unit (new paint, new flooring, new light fixtures).To estimate costs accurately you should really be walking the property and creating a detailed list of the repairs and costs for each item.I would recommend getting The Book on Estimating Rehab Costs to help you learn the basics.I have a spreadsheet in my fileplace that may be helpful as well:https://www.biggerpockets.com/files/user/drobertson/file/house-flipping-spreadsheet-6-lite

You’d be safer to light a firecracker in your hand and grasp it as tightly as you can and hope it doesn’t blow your hand off (FYI it blows your hand off)

The Rich own nothing, they control everything, is said for a reason.Just because someone is Rich by their own definition of the word, does not mean they should not act and do as the Rich do.At least that is my train of thought in all of this.Those that say don’t do it, I think are protecting their interests and professions.Those that say do it, may very well be selling something, but who cares so long as what they are selling actually protects the consumer.The thread about the man that had the SEC in a maze trying to get his assets should put light on the matter...not saying to commit fraud if thats what he did, i’m saying to look at how hard it was to get to his assets, even his personal property.

Does anyone have any insight into this and would like to shed some more light on this area for me?

If your friend refuses to see the light on this deal, then you can't force him.

Second, cashlow keeps the lights on and allows you to grow, but wealth is created through 2, 3 and 4.My recommendation is to analyze a deal in all four categories and you make an offer when it meets your criteria in all four!