This is for the tax-shielding purposes.I would try not to do less than $50k, only because normal custodial fees can wipe out anywhere from 0.5-1% of your return.

Then at the opposite side of the spectrum, there are also lenders who probably overcharge for things, whether it’s because of a large marketing budget to run all the commercials and ads in your face 24/7 or because they’re a large nationwide lender with actual bank branches and have more overhead to pay for to be physically present in such markets.

Once I sent out 25 offers through realtors on houses which I saw physically in person; before I can get 1 accepted. 

Others are commenting on the legality which I question, but basic physics tells me something's up. 

I strongly recommend spending as much time as you can afford, physically present in the neighborhoods you're considering. 

Due to physics, there is no way to overcome this barrier.

With the long term rentals, all rent payments are done online and the only time where we need to be physically present at the property is during times of turnover or major repairs. 

Key is getting the property to appraise high enough that you have 20% equity after the increase in property value.5) Once refinanced into a conventional loan, you are eligible for another FHA loan and can repeat process (Including physically moving into the next property).

Here's how I do my due diligence:1) Portfolio matching: (takes 30 seconds per deal)a) Have an educated opinion on where you think we are in the real estate cycles (financial and physical market cycles)b) Then only then pick the strategies, capital stack, and specialized asset subclasses that make sense for that opinion.

You have legal if not physical possession.