In some cases, you might have some hoops to jump through.Here are a few thoughts:-  Almost all REO contracts will prohibit you switching financing options in the middle of the transaction.-  You can typically choose to use your own closing agent for an REO closing (though the bank will no longer pay for title costs if you do).  

If the rental property you are referring to is owned by you, the property cannot go into your Solo 401k as this would be a prohibited transaction.

If you're looking for something that is still relatively close to the city, the prices are quite prohibitive.

What is subject to, what is a note, what is a lease with option, what is a lease purchase, what is an installment sale, what is a land trust, how to write up a letter of intent to lease or purchase, how does private lending work with custodians and what is a prohibited transaction and a disqualified person, how do you do joint ventures with business people using their credit and their down payment money, how to do a joint venture with the seller who has a minor rehab, Once the student understands that, and they understand how to talk to home sellers, how to present solutions in non-technical language, how to close and get a signature on the first visitOnce that is completed, then both the student and I interview contract attorneys and registered mortgage loan originators for Dodd Frank issuesThen only then the market for sellers that want to sell and are open to creative financingI believe learning those skills will get you off to a fast start and get to profitability quickly

The banks might have contingencies that prohibit that, which is why I ask.

In fact, Fannie specifically addressed the confusing statements you referenced above, noting that the “a second home must not be a rental” portion of the lending guidelines was intended to prohibit renting through a third-party exclusively as a full-time vacation rental.  

Some ideas from others:* bank loans are not available on some types of properties * the tight lending climate has made bank financing "out of reach" for many * seller financing is an "age old" tradition based on private property rights * these rules would prohibit even partial seller financing - i.e. a "seller second" * according to HUD's "Residential Finance Survey" in 2001, roughly 40% of all non-farm residential properties in the US are owned free and clear * an estimated 6 million Americans own a property other than their own primary residence * an estimated 4.5% of Americans own three or more properties, many purchased solely as investment properties * 40% of non-owner occupied residences are mobile homes which are more difficult to sell with bank financing * approximately 5% of homes in US are for sale or for lease... seller financing may be key to liquidating this inventory

State laws typically prohibit agents from paying referral fees to anyone without a real estate license. 

I am from that city, but I currently live in NYC -- which is clearly prohibitive for a first time investor to try and wiggle into the world of real estate investing.Anywho, this property I'm purchasing is a 2 bedroom, 1.5 bath townhouse located in a pretty convenient part of town.  

College is big business in and of itself and is cost prohibited unless you are getting a degree that is required (doctor, lawyer, engineer,) that results in high income.First on my advice is WHAT NOT TO DO!