I am glad you are all so close by for help and grateful for the help in distance.

@Charlie RushtonAre you looking to do this long distance?

And I'd be ok with a longer commute to work if the location was right.

Flipping long distance isn't impossible, but it does add a layer of complexity.

Once you have an FHA loan you are not allowed to have another FHA loan unless relocating a great distance for work.Now that you have exhausted your Low Down Payment Options (Portfolio Conventional and FHA Conventional and FHA) you will need to use a Standard Conventional Loan and put 20% down to get your 3rd Duplex.The sky is the limit...you could continue to buy properties and build an empire or just stop there and enjoy more free time...I have friend who quit his job and just manages his properties now.Keep in mind that this 4 step process I outlined takes time (anywhere from 1 to 10yrs depending on the person) so keep the big picture in mind but don't let it stress you out too much.

(for the record, the lenoir options seems cool, and i think many of us in avl have been just waiting for marshall to heat up...still don't know why it hasn't..the setup is just awesome.)in the end i finally found what i wanted (an sfr walking distance to RAD / new belgium). it was off market and likely wouldn't have been a property i could've gotten a traditional loan on--just needed tons of rehab. it fell into place by talking to the owner (an investor who was on the verge of divesting her other properties...why not this one too?)

Worcester is a great place to start if you know the city well and can deal with the wide variations within short distances.

If it's been a rental for longer and you'll pay taxes either way then I'd debate how much I liked being a long distance landlord. 

And, Bart commuting costs rising and all.  

We live in California and commute to Kern and Los Angeles counties.Thank  you for all your comments.