I would then plan to use this forced equity (since I plan to buy a fixer upper) to invest in another home.I have been constantly reading to househack right into the MFH, but this may take some time for me to acquire the money and purchasing power.

👋I'm a dedicated buy-and-hold investor looking to expand my portfolio, and I'm eager to connect with lenders who are ready to dive into more deals with me.

We are considering renting a home in the neighborhood we are interested in buying in, to test it out for a few years.

I didn't do any due diligence as I had no intention of buying, but assuming title and physical condition were decent it looked like an easy $50-100k flip.

Buy a property worth at least a million, better a few million, to make it worthwhile.  

It looks like you are not able to get lending because your Debt-to-Income ratio is too high.You should figure out what your DTI ratio is.If you are buying cash-flowing rentals, your rentals should actually be helping you get future loans easier.

Lender (One Brokerage from here on BiggerPockets) says we can't buy it as a primary residence if it's leased.These leased properties would be perfect because July 2025 is when they would move in.We DO NOT have 15-20% down for a commercial loan. 

If it is section 8, i would make sure they at least have some income coming in to be able to afford to eat, clothe, and buy all the other necessities. 

Since the buyer was initially qualified to close, I was thinking about initiating a lease with an option to buy.

@Joshua G Steed I have yet to buy a mobile home at auction but have heard about them.