The biggest challenge seems to be finding lenders that offer these loan products which is where I’m looking for help from the community with recommended lenders that serve Texas.The Fannie Mae (or Freddie Mac) options are preferred over FHA purely because of the (perhaps perceived) limit on renovation funds that the FHA option provides.

House HackAttend as many REI meetups as you can to grow your network of investors for referrals, help through challenges you may incur but don't have experience with, and learn from proven guest speakersNetworking app like blinq to compile all of your contacts for REI in one area with phone and emailbegin conversations with local credit unions exploring what type of loan products they offer

The challenge for me will be to attempt to mirror this type of financing approach to Southern Calif. real estate. 

good luck with it in those markets like Akron were existing inventory can be bought for less than replacement cost it does create some challenges so I think one really needs to pick locations carefully and probably by school district as well.

There are of course exceptions, but so long as you pay your taxes, the US government won't challenge you or your business, so long as it's legal and it complies with the United States law.So the immediate answer is yes, you can do.

Challenges?

Challenges?

I only ask because that is, in my opinion, the most challenging part.  

Of course, these properties are full of challenges so be prepared before you start. 

However, I’ve been hesitant due to challenges like remote management, high interest rates, and low cash flow.