We have flirted with the idea of section 8 tenants, but are leaning towards a more traditional long term rental plan.

Hi Guys,I am planning to get my 2nd rental in memphis.

But to answer your question, you'd probably have to look into getting a co-signer or getting a hard-money loan if you plan to flip.  

Hello, I am working on my financial independence plan - my goal is to generate a passive income of $10k a month.

Are there any major flaws with this plan, other than tying up a significant amount of capital on the first property?

@Michael R. they only offer it because they collect more in fees than they pay out, most all protection/warranty/insurance is a slow bleed, just save an extra $5000 for your reserves and don't pay it to Zillow. 

I had accounted for this in my business plan, so no surprises there.

Some of the residential agents may not know or understand your game plan. 

However I believe you can do a no fault eviction if you plan to move into that unit.

I plan to convert my Surf City house into a long term rental soon (long term since my HOA currently does not allow STRs).I am an active duty Marine and have been in for almost 10 years.