I am from a rural area in MN about an hour outside of the Twin Cities. 

What are some ways of generating income in addition to renting out the residence in a house like this?

.), for which you should consult a knowledgeable CPA, but those revolve around shifting areas of taxation and deriving additional benefits.You'll want to do your flipping in an LLC (and if you plan on doing multiples, you should look into Series-LLC) for liability purposes (,  so that if a buyer of one of your flips comes back years after the sale with a lawsuit, you are protected).One way or another, the money gained from flipping is active income and you'll have to pay taxes for it.

I have never owned a home, so I have no real assets to put up to be approved finance through a hard money lender. so my question stems, should I use a FHA  loan for my fist investment (and home) for a buy and hold property , and then later utilize a hard money lender for additional Buy and hold investments?

Tax it at ordinary income tax rates, that is fair, as after all, the contribution was tax deferred, but to then take an additional 10% is unfair.

And I'm cashflowing an additional 12%.It is true that all of those issues are due to the tenant, but a good property management company should shield you from those issues. 

The inspections would be 175 and If needed...... a additional 300 to do a pump out in order to inspect it.

I should also mention that I paid $1,000 towards my buyers attorneys fees and in addition he charged my buyer $850 for a grand total of $1850 in closing fees...so I am pissed off  that he took advantage.

Have tenants sign additional clause and you are golden.

If someone can help me answer these questions and let me know any additional information to look for, I'd really really appreciate it!