I'm hoping to add this as a start to my portfolio, rent and eventually sell once the wife, and I are closer to retirement age.

At this point since it's after the fact while not totally correct; you may explore adding the missed asset/basis amount as a selling cost to just reduce your gain. 

Any amount you purchase less than you sell, or any amount of cash you take out is considered to be profit. 

I would tell people today that if you buy a primary residence expect to stay in that home for atleast five years, especially with a FHA loan which has lower down payment as the current forecasts for home appreciation or very low which with closing costs on the buy and sell, it will take several years to have equity in the property and enough to be able to sell, so that is something also to consider.

Growing means refinancing or selling in order to acquire more assets.

If you sell directly to a homeowner, the issue can come back on you and bite you in the a...  

If you want to acquire more real estate I suggest more savings or sell the other property with equity. 

Many investors buy properties Subject-to, and some even sell them Subject-to.

. - In the unlikely event that you get a lead, A "motivated seller" who will work with an 18 year old to sell their home, is likely someone dealing with death, disease, divorce, or disaster.

For those of you who have used virtual tours in your listing's have you seen a difference in how quickly properties sell or rent?