I would exercise a great deal of caution buying a house that you plan to live in and turn into a rental with zero or little money down... unless it's a duplex, triplex, or quad.I bought my first house zero down and turned it into a rental two years later. 

Exercise takes me 10 min

@Brandon Goldsmith   Interesting exercise.   

I'm a personal trainer and exercise science professor and love what I do so I'll likely shift to a less stressful part-time schedule.

My understanding is that most loan docs will allow the lender to exercise the "due on sale clause" with the transfer if they would like.

The books and study gives direction and 'tricks" but the skill is only gained from doing, the actual exercise of putting it all into play and just getting in there and doing.

Game room and exercise room is what we did but the walls were all drywalled and finished and the garage floors had epoxy already. 

(That's sort of the point of that exercise......)  

Then exercise your lease options to remove the tenant as soon as you can for not holding up their responsibilities under the lease. 

Deed executed between seller and Investor 1. 2) Investor 2 puts a 1K option on the house with Investor 1 at a purchase price of 75K. 3) Retail buyer comes along to buy house from Investor 1 at 110K with 25K down. 4) Investor 1 pays Investor 2 40K to NOT exercise the option, 25K immediately and the balance in payments over time. 5) This is investor 1's first flip and will be the only one this tax year.Other than the 1K option money which is ordinary income, what taxes will Investor 1 incur?