Obviously if you acquire your deals based on this assumption and ended up operating better than it's more money in your pocket. 

Unfortunately you will have to qualify using market rents, if you want the better rate.

But I want to know, is it better to buy an investment property first or my own home first? 

This seems like brilliant grasp of the obvious, but I mention it so I can answer your questions1.

This also leads owners to ASSUME simpler is better when it comes to management contracts.

I think it's pretty clear it disincentivizes new construction or encourages landlords to find ways around it.However, I do believe we could do better in areas for encouraging new construction with zoning reform and other tax incentives.

If he has the right personality, he will get a better return with real estate investing.

I agree with the posts above, save money and make yourself someone people want to lend to.  35% equity with no money in your pocket isn't a good deal for a lender.  35% equity on top of a 25% down payment with 6 mo of reserves in your pocket is probably a much better deal for a lender. 

@Chris Seveney is much better informed about the current state of note sales than I am since 80% of my business is originating high yield notes and only 20% is the purchase of existing notes.  

BUT, If you do not plan on refinancing your loan in 1-5 years, then you could get better pricing on a DSCR loan.