What are some of the considerations or pitfalls to this strategy where we would start renting a single family residence out, then convert to our primary residence after ~5 years.

We tried offering seller financing, money toward buying down someones rate, etc.

I will then place that in a money market or something that earns 3-5% interest to account for the inflation mentioned above.

Spending the money you are talking for a system that will add minimal value is not where you should be spending your money for a flip. 

There are a lot of ways to make money in real estate just because you haven't done it that way yet doesn't mean other people aren't profitable. 

This step prevents us from wasting money on inspections if the seller is not willing to adjust the price.

Or it sounds like an FHA loan will be the way to go, unless I look for private money.

Hard Money How did you add value to the deal?

The money was transferred digitally, but not part of the loan.Thank you!

We are planning to start our first few properties with cash so we don't get burned on hard money interest payments since it will be after work and weekends we are working on the project.