In reality, if you’re not budgeting for OpEx, that money is already spent—it just hasn’t left your account yet.That’s where Break-Even Occupancy comes in.

The original occupancy inspection tells you how many can stay in the unit.

2)  Should the occupancy taxes still be collected? 

The biggest pitfall has got to be the limited due diligence and occupancy issues you mentioned.

It also holds money vrbo and direct bookings Airbnb take sales tax and occupancy tax out for us and automatically pays it on our behalf VRBO and direct bookings do not.

Quote from @Mike Eichler: The Opportunity You’re OverlookingWhen we’re hunting STR properties, we always talk about location, design, occupancy, ADR, all valid.

The last 2 years we haven't even hit 50% occupancy levels.

That mix of one vacant side and one leased side can definitely get messy with FHA’s owner-occupancy rules.If you need the place vacant to satisfy FHA, I’d keep it simple in the offer and just say something like:“Seller to deliver both units vacant at closing, and provide tenant notice within X days after due diligence ends.”That makes it clear what you need while still giving the seller a fair window to handle the notice properly.That said, since the other lease runs until next July, there’s a good chance the tenant won’t (and legally doesn’t have to) move early unless there’s some incentive.

Thats good to note that wholesalers dont allow inspections You can absolutely use an FHA to house hack, you just can't buy from a wholesaler with an FHA or Conventional owner-occupant loan products. 

If you have low occupancy then it might be worth giving them a shot.