Two years or two tax returns stems from the period outlined in the safe harbor or rev proc 2008-16 and referred to in a couple case rulings as two years, two calendar years, and two tax years (appropriate times not recommended or required times). 

I do not wish to offend anyone, but rather stimulate discussion and hear what everyone else's opinion on the subject matter.Quick backstory on how I got here. 

Decide which kind of investor you want to be (Single Family Residence (SFR), Commercial, Storage, Real Estate Investment Trusts (REIT), Land, Tax Liens, Passive, Hard Money Lender (HML), 1-4 Multi-Family, Notes, Fix & Flip, Buy & Hold, "Subject To" (Creative Financing), Large Apartments, Duplexes, Assisted Living, REOs, Foreclosures, Short Sales), etc.

Podcast episode about exactly that subject --> https://anchor.fm/sean-pan/episodes/33---Why-Investing-in-Your-Backyard-is-the-Best-Strategy-with-Saj-Shah-e3d249?

Real estate is a fascinating subject to discuss, with many techniques, strategies and leverage points based on personal choice and preference. 

Anything On the subject would help!

You have outlined simple steps for young individuals to set themselves up for their first purchase of an investment property. 

@Rick StantonPer a lawyer I spoke with, all contracts are subject to interpretation, and can be broken.The insurance company has the goal of least out of pocket. 

This isn't a court case yet, and if you choose the court route, you're subject to a judicial foreclosure, which has its own set of nightmares and redemption periods (even in California).

I have a lender that I work with who's an investor herself and incredible at creating strategies to move forward on your next purchases (she helped us devise our strategy outlined above).