I would live in the vacant unit.

Not to say that you can't jump to long distance investing right away but if you don't have any experience I would try to at least invest in one property within a 1-2 hour drive from where you live.

You've lived in the property for at least a year which is the expectation for FHA loans.

You would just open one in the state you live in (or the state you're investing in). 

You need to keep in mind the person that was living in your property is a seasoned lowlife.

There are other cash shortfalls that will come up, which you will need to cover, especially if your stretched at the very start.Work on your own living arrangements as your first investment. 

I live in AZ, left to live in CA for 14 years, then moved back in 2007. 

I have a tenant who has lived in our 4 plex for almost 15 years, long before my husband and I purchased it 6 years ago.

I currently live in Nashville TN.

I grew up just north of San Francisco and moved to Reno, NV to live and invest.