@Ryan Williams My primary is paid off which has allowed me the freedom with my low paying job to be able to obtain mortgages to purchase 5 rental properties.

Building relationships with wholesalers and attending local Milwaukee REIA and Rental Property Association of Wisconsin meetups could surface off-market opportunities.

Living in the property for two years likely allowed you to claim the capital gains exclusion... up to $250K for singles or $500K if married.

Always curious how others weigh that trade-off.When it comes to balancing cashflow with long term equity, allow me a slight running start. 

Quote from @Arun Maheshwari: Hi,Does the bank owned foreclosure property allows to put Inspection contingency for big issues like plumbing, eletricity etc.ThanksIf it is bank owned and the foreclosure has taken place - possibly but they would make you responsible to turn on power and water and turn it back off.

Every single surface in the house was redone/replaced.

This allows you to buy using a LO, but you don't have to sell to the tenant, which allows you to have a standard tenant in place. 

I found simply raising rent to the max allowed is better than an eviction they move with out all the fuss  :)

Based on my experience, you're right that many lenders allow the use of a second home mortgage for properties intended for personal use, provided you meet certain conditions.

Getting it under market value would be a bonus.So, would using an FHA 203k renovation loan, which would allow me to buy something unqualified for a standard mortgage, which would weed out a lot of competition and push the price lower.