Make sure you take all of these factors into consideration.  

Again though, your market is going to be the determining factor here, and probably even more of a micro-market even. 

That way, you get the tax preferential treatment of long term capital gains and still get to build up capital while you flip.

I think there are a lot of different factors being discussed here.  

And I often wonder if this is one of the contributing factors to the large amount of foreclosures in our area: reluctant long-distance landlords who have a former primary residence as a rental.

Depending on your individual tax bracket/rate this should save you money after all numbers are crunched, factoring in the amount of interest you pay as this is, obviously, a true cost.This of course also means that you, during the phase of paying off these mortgages quickly, will have less cash in your account.

You need to add some other stress factor added to not owner occupant (absentee) like vacant and / or vacant AND late on taxes or mortgage.  

@Garvin Yu I think the most important factor here is your plan to grow.

When you are gambling a huge factor in your success is limiting your downside risk.

A few of the units around me dropped their prices, but even then they wound up renting to people that I rejected due to any number of reasons, so the season has definitely thinned the pool of good prospects.My units show well and are all updated, but I have fairly high criteria (650+ credit, non smoker, 3x rent) so it may also be a factor.