Preferably stay for one year and find another house.

We are buying two houses right next to each other.

The investor if they slip and the lender if they need to take the house back.  

However, I see this as a vertical integration and bringing more capabilities in house to make more money instead of hiring an outsider firm. 

I don't see it as an issue but many still do, at least in my small town where the majority of renters are elderly people looking for low maintenance housing options.

I would like to sell a couple properties in the future, would I be able to use the 1031 strategy to buy one house that I would use as a primary residence?

The house has needed some work done which the PM handled.

Ugh.In all seriousness, I think for $50,000 with a 1200 square foot house in Michigan should be able to modest rehab.

I think if you can nail that down you will be able to find a market easier.As a buy and hold investor some of the things that were important to me when deciding on a market were landlord tenant laws, price to rent ratio, housing demand, ability to build a team, large population 500K plus, multi-family availability and some other factors.take the process step by step and you will be fine. 

Nice way to house hack!