With your primary, assuming its a fixed loan, a higher percentage of your payment is going towards principle pay down (less wasted dollars). 

I started listening to the podcast and reading real estate books about two months ago, and I’m excited to take my first step into real estate investing.I’m currently in Spokane, WA, and I’m pre-approved for a loan.

. - will it influence property taxes once we move to conventional loan in 3 yrs? 

I would say maybe look into a 203k HOA loan great loans for people our age. you would be able to do a value add and not pay your mortgage until the updates are done up to 1 year.

I mean, don't get me wrong, we have to comp the property...so if you are looking to REHAB the property and make it something different, then you need a rehab loan first and then refinance after type of thing. 

We're willing to live almost anywhere in the greater Sacramento area based on what we can afford, provided of course that the property is in a decent neighborhood that has a good chance of attracting responsible tenants.As for budget, I believe we could get a conventional loan for properties up to $600k, but my strong preference is to find a distressed property (or seller!)

Hard Money Loan and HELOC on my own house.

You've definitely come to the right place to find resources and connections.Here, you'll find several knowledgeable and experienced agents who can help guide you in securing the right property.

Quote from @Timothy Hero: I've brokered over 325 DSCR loans.

I am looking at different loan options but to break even (not having to put any money of my own in the house after the initial down payment) the current down payment required is that much.