Do you have the cash to rehab a property on top of the 20% down payment and closing costs?

Non-passive activities can be reported on Schedule E. 

a flip requires CASH for closing costs and points, a down payment, holding costs, costs to cover any overage you weren't able to borrow...so, the issue with flipping is that (1) it takes capital, and (2) the return is 6-12 months out.

@Aspen JayIt doesn't seem like the numbers make sense unless you can put more money down to lower the monthly payment which I'm assuming that is the largest part of your expenses. 

You only need a place to track tenant information, payment history, maintenance, etc.

I agree with your conclusion that it doesn't make sense to refi into either a higher rate mortgage or a similar-rate mortgage that you have to put money into out of your pocket.The other option is to use a non-FHA load to purchase the next property. 

Non-ower occupied you're limited to 2.There are a few of us in town that are here on BP.

.—(1) When any lands are sold for the nonpayment of taxes, or any tax certificate is issued thereon by a governmental unit or agency or pursuant to any tax lien foreclosure proceeding, the title to the lands shall continue to be subject to any easement:(a) For conservation purposes as provided in s. 704.06 or for telephone, telegraph, pipeline, power transmission, or other public service purpose.

What are typical down payment requirements?

I put $30K down payment.