Incorporating as a "New Every Two" Landlord

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I am planning to invest in real estate using the new every two strategy with a twist. Instead of selling after two years, I plan to keep my previous properties as rentals. I have a full-time job, so saving up 20% down payments (which is required now for investment properties, right?) will take more years than I have patience for unless I'm buying $50k houses. I have two questions (well, three if you include the one in the last sentence):

1) Am I correct in assuming that I must remain an owner occupant for a minimum of two years? I know that's required if you're planning to sell, but I'm not sure if selling is the same as just moving out & moving someone else in.

2) How and when does incorporating come into the picture with this strategy? I am in Virginia if that has an effect on the answer.

Thanks!