We own a home valued at around $400k. 

What are you paying for these vacation homes ?

Looking at purchase a first home but the issue is the homes we’d like to invest into in our area are far too expensive.

FHA security instruments require a borrower to establish bona fide occupancy in a home as the borrower’s principal residence within 60 days of signing the security instrument, with continued occupancy for at least one year."

Hello,  I've been putting offers in on for my first rental property (single family homes out of an HOA).

if you have a vacant home that needs to be liquidated.

The market for buyers on QCD is going to be smaller so you are limiting your market with a QCD but we buy/sell homes all the time via QCD just need to find the right parties.  

It should not matter if they classify it as 'Barney the purple dinosaur' for taxes, the property's comparable sales are other two unit homes that will sell as two unit homes.

and the fact that rent goes up overtime as well.I know some will keep pulling money out of rentals to buy more or use the money elsewhere, but then they have very little equity in the home. 

Unless you plan to sell your home soon, cash out refi it.