I believe I was trying to articulate that it may be easier to get more desirable financing in a shorter period of time in the future with a short sale than a foreclosure on your credit and that a foreclosure on ones credit is less desirable.

A lot of times that dollar is going back into your pocket via a retirement account or as prepaid supplies, etc. but it's still unavailable to you for a period of time. 

The 24 months of residence can fall anywhere within the 5-year period, and it doesn't have to be a single block of time.

What's next is you really need to slow down and get educated.  

And some have a periodic reassessment--for example they reassess every four years or something similar.Bottom line is you have to research the rules no matter where you invest. 

Get educated. 

They will only do a simple refi on any investment property (max 3 properties) and will not let you pull any cash out...period.

Think of your $100K over a 10 to 12 year period as representing an opportunity to turn your money into $1,000,000.00 .

This way in case your tenant burns the place down, you are covered during the construction period.

I know traditionally with the BRRRR method, most lenders want a 6 or 12 month seasoning period of the property being rented.