Consider everything from occupancy taxes to marketing costs to maintenance to cleaning, and get a good idea of typical occupancy rates in the area. 

This is to anticipate exactly your situation, making it available for an owner occupant.

#readtheconditionsMy boyfriend actually has a 2 story 5 bed 2 bath home with 9 occupants including kids.

I always had photos of the unit when it was empty and ready when marketing, so if I got an interested prospective and marketed for future occupancy, they knew the unit would be occupied at showing.

So instead of putting 25% down at a investor rate, you put 3.5%-5% down (or at least have the option to if you want) and capture the OO rate.How it works from a mortgage standpoint is that he's the occupant borrower with no income.

I'm thinking if I can get the current occupant to agree with a restructured and lower principal balance that I can turn this into a Performing Note.

There might not be as much appreciation as rest of the country, but you can pick up properties with equity and leave room to add value and sell them for profit.I closed on a Merrillville property last week and one last month and it's a very hot market for investors because there are a lot of owner occupants moving in the area.Also, like @Paul Stoutsaid the property might not have a AC unit.

The market hadn't really changed, just that with some repairs and carpet/paint it could then go FHA to an owner occupant.

Technically if I have to pay utilities then the real estate listing and appraisal was fraud because he lied.I do want to try and keep him happy so I had thought about changing a halide exterior light to an LED and putting motion sensor occupancy sensor light switches in the unit so that lights turn off after 30 minutes to try and appease him.  

There are definitely 2 tenants there if not all 3, I haven't spoken to the listing agent directly but just gathered some info from online and from my realtor friend who told me about it to begin with and forwarded me the marketing materials (which didn't mention occupancy, we just saw cars parked at both ends implying someone at two of the three units).Thanks for any insight and info!