I haven't participated in foreclosure sales but my understanding is that the same issues with occupants apply.

@Jeremiah Dye, my FL municipality also changed the occupancy to 8 people.  

We had someone fill out a tenant profile with zillow and they listed 4 occupants.   

Here’s how lenders usually look at this:Most true commercial loans don’t allow owner occupancy, because they’re underwritten on the property as a business, not as a residence. 

But even at $1,000 a month, I cannot imagine you can get more than $100 ADR, and even at 80% occupancy it is $2400/mo annualized. 

You’re right about SBA’s owner-occupancy restrictions making it tough here.

No-Cause Terminations Are LimitedA landlord can only no-cause terminate a tenancy within the first year of occupancy, and even then, it requires a 30-day notice.Once a tenant has lived in the property for more than a year, no-cause terminations are no longer allowed in Oregon.

Any guest staying with Tenant for longer than ten (10) days shall be considered an occupant of the Premises.

Kelly Bailey here, I have 8 MTR doors and almost 5 years of experience in the space with 95% occupancy through Furnished Finder and Airbnb.

Also, many with too many occupants, I am limiting it to 3 or 4 because of the septic.