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.

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. 

Every single surface in the house was redone/replaced.

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.

I also have a lender that has a loan product that will allow you to put $0 down on a home with an ADU that would add another rentable space to get income from.

The bathrooms made me so depressed... plastic shower units with sad apartment class vanities with some sort of beige solid surface tops. 

Looking to see how I can tell if a vacant lot/land is allowed for a single family home (SFH) or duplex to be built on it.The area is West Palm Beach, Boca Raton, Ft.