So you can rent it out for a total of three years and still qualify for the 2 out of the last 5 residency and get your gain tax free with the exception of depreciation recapture.  

Your plan sounds ok except I would not want the tenants living there to know I am the owner of the home.

I think that once you decide where you want to invest...focus your next efforts on building an exceptional team. 

Except that now it's the 21st century, so it doesn't take 20 years, 4 or 5 years will now do the trick.Local to my market, the way this has played out...Anything 2-4 unit on the MLS, the sellers get 25 offers.

Three basic fees, which I won't share here (legal/professional reasons) but which are same or better than shown:Leasing fee negotiable/size of portfolioMonthly management fee/negotiableRenewal fee/negotiableEviction, inspections, move out/turnover management all included except for costs (filing fees, contractors, etc) and lastly, a small percent markup on repair services for the administrative load.Oh, and sorry, we're aggressive about collection so we keep late fees.

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@Dalwin Garcia Rent control in Passaic applies to much any investment property except: single family home, single condo/coops, owner-occupied 2-family and new construction.

., it sounds like a decent deal to me except for the $0 cash flow for the first five years.  

There is no by-right exception to this, but if all your neighbors have smaller rear yards, you can appeal for a variance and it usually goes through (but I'm not a zoning lawyer so don't take my word for it). 

., I have very limited experience on this particular subject, but secured liens are NOT subject to discharge in a bankruptcy except in very limited cram down situations.