Others employ a BRRRR method or do wholesale deals/flips to have cash to invest long term. 

But, due to being self-employed, it is extremely difficult to get accepted for any kind of FHA loan.

I'm in a situation where i'm newly self employed (1.5 years) so dont have enough tax records to qualify for FHA lending. 

You need to check for setbacks, frontage, lot size, elevations, and flood zones.

And since you are looking to build legacy, typically that comes from building a buy and hold portfolio.I don't mean to assume that find land, getting it entitled as needed, and then building a property of any size is "easy", but with the added work often comes the potential for better returns, both in cash flow and value.  

And we know there is NOT rampant "bloat" in rent prices because if there were, it's also simple math that landlords would be rushing to create additional units to capitalize in that "pay day" right, because it's "bloated" rents, meaning over sized profit margins, which to be true would mean it's "cheap" to create new units vs the over sized profits it's producing.......

So if I were in your shoes I would want to be really confident in the exit strategy. 1) confirm rent estimates 2) confirm ARV and the demand in that area to buy a house like that in the price range 3) are there banks willing to refinance at the LTV you want with the seasoning period you have. 40k for a house of that size that needs that work would be the cost of materials alone where we live in WI, so verify your estimates.

Since Section 8 has a particular amount they allow for size of unit you should check that the amount for your unit size.

Purchase price: $400,000 Cash invested: $57,000 Type: Single Family ResidenceParking: Garage - AttachedStories: 2Bath: 3 Full BathsBuilding Size: 2,686 Sqft.Lot Size: 50,791 Sqft.Year Built: 2005

Does not fly.And if you claim that you only spend 20 hours a week for your W2 job, an IRS auditor will request a confirmation from your employer.