The benefits are compounded.  

I will be moving likely within the next 8-12 months or so, and my wife and I are planning on renting out our house, so that's how I figure we will start.I've got a pretty good gig going with the AF so this will be more of a supplemental thing for me at least in the beginning so I would say I'll probably be taking a more passive role to start, although I'm open to anything.I spent the last two years as a recruiter so I've gained some valuable experience in Human Resources, advertising and marketing, cold calling, as well as general salesmanship so I think I can find a way to use those skills in this venture.

If you purchase a property in the Midwest for $30k at a "20 cap", and you get lucky that CapEx doesn't kill you, and lets assume that you earn $500/month of true cash flow even after 10 years of holding (this would probably never happen, but I am giving your statement every possible benefit of the doubt).Or, you purchased a $500k property in Northern California at a "3.5 cap", this was bought at a true market cap -- no discount.

Not sure if you have a gain in it now.My recommendation is to separate the decision of your former house as a rental and deciding to move.  

Would you recommend I buy my first property as my primary residence now to gain the experience of home ownership or look to buy an investment property (out of state most likely)? 

I know that I can present an investor with a solid return on their money.Are there any creative methods to gain access to $10,000-$20,000 in order to cover my closing costs?

If so, sounds like a good way to leverage your benefits.  

BP is an excellent place to gain more knowledge. 

First you gain some experience , second , scratches on a elevator with out pictures of the person scratching it mean nothing . 

My understanding of investing in REITs is that the returns are taxed as regular income as opposed to capital gains.