Other options could look like a property closer to you or in an area you are more familiar with, could be turnkey options with an established company, could be partnering with someone to gain some experience. 

Hi Fellow investors, I have been using BP to gain insights in real estate investing and have been applying them in my townhome rental units.

I thought all 30 year mortgages require only 12 months occupancy.It seems to be a lose-lose since the lender loses the interest on an otherwise good loan if it had to be sold, and they gain nothing.  

The knowledge you gain from it will enable you to grow 10X in the future.

Even in a perfect world with no maintenance and no vacancy, you would pay $700/month or more in the hopes of gaining equity.

I'm no tax pro but I don't think the debt really matters, you will still pay capital gains. 

It mitigates the risk because you can go slow, you are living in the property, and you get the tailwind of 2+ years of market appreciation while waiting to sell tax free on the gains.

Also, the owner expressed concerns over the capital gains tax early in the discussion...so I am thinking the opportunity to do vendor financing will help me get a good purchase price and help the vendor with taxes.  

For holding vs. flipping, let your goals and market conditions guide you—flipping can build quick capital, but holding offers long-term gains.

Plenty of resources here to get familiar with to gain insight on your REI journey.