Then you can refinance it into a Conventional loan, and buy a new house with the FHA loan IF the new house purchase is a significant upgrade and/or is required for work/family.VA Loan - 0% Down. 

I plan on doing minor upgrades to keep it rented but it could still be a good opportunity later on with the talks of some upgrades going on around that side of North Charleston.

@Traolly Xiong  Hello Traolly congratulations on the hardest part, of making a conscious decision to take action.

The house appraised where I thought it would but the appraiser said with additional upgrades the appraisal would be about 15K higher.  

The village has done a great job on upgrading the Madison Ave biz district and the town is finally overcoming the impression many had of it being the place where folks in Oak Park went to drink.

One was a rental for several years and the other was an ugly house in a good neighborhood that needed about $30,000 in repairs and upgrades. 

Having 2 years time frame you can work on the house in your spare time and still get it done (depending on upgrades).

. $30,000 in upgrades all completed in 8 months.FinancialsHere we go...we financed the property with 5% down FHA and paid approx. $10k towards upgrades with another $10k financed through a non-profit and got the solar system for free as part of a grant program.Current Rent: $1,900 per month - Cash Flow $500 per monthHome value: $275,000 ($82k in equity).ROUND #2!

The current plan is to get a HomeReady loan as first time homebuyers, upgrade to a nicer house in a nicer neighborhood without going overboard (going from current 140k house to 175k range)*, using our current residence which can rent for 1k-1.2k to pay off the mortgage on the new house, save then reinvest in another property.

It's likely a few will move and you can begin the upgrading effort.Good luck!