Also, cash flow from the rental needs to cover your mortgage, insurance, and taxes.

Are you quoting net cash flow - after taxes, insurance, maintenance/repairs, property management if needed? 

You have the ability to sell while limiting your capital gains tax because you lived in 2 of the last 5 years. 

Or sell using the 1031 exchange along with a partial 121 primary residence exemption There is a way you could take advantage of the 121 primary residence exclusion allowing you to take the first $250k of the gain tax free ($500k if married) and qualify for a 1031 exchange.Say you purchase a property as your primary residence (house hack extra rooms for extra income) and lived there for two years while stationed there.

@Felicia NituIn addition if you actually want to realize that value, you need to count another 5% for selling costs, and the taxes from the sale.Assuming a 20% capital gains tax, your total ROI on the above scenario would be about 12%, even with the numbers you were using. 

So, for a $60k loan, you'll likely need $12k-$15k for a downpayment, $8k-$12k for closing costs (prepaid insurance and taxes, lender fees, attorney fees, points, prepaid interest, transfer taxes, etc), and then another couple thousand for reserves and whatever else.

If you need financial help, ask under the "Finance, Tax, and Legal" forum.

If you live there 2 years or more before selling you will be exempt from tax on the 1st $250k in profit which is a nice bonus. 

I learned this when I bought 12 new builds for GOZONE tax bene's really nice brick homes in best part of town but values just did not rise enough so by the time i had to change everything out and pay sales commish it was break even at best..

If you live in the home for 2 out of the past 5 years and move out of state you may be exempt from the tax.