I'm only on my second set of tenants.My question/situation is:I rent my old house.

Now I am ready to commit to take action and buy my first property, but could use the help of the BP community.Given the high property prices where I live, and low likelihood of finding a cash flowing property here, I would like to start with an out of state rental property.

I was told if it was a second home we’d get 4.75%, but we do intend to rent it. 

The issue is fluctuating income, you could have 30k first quarter and 5k second quarter, in short, lenders will not know if you can pay 3 months of mortgage on that second quarter, whereas if it is a W2, they will know that you will have the paycheck regularly and more assured you have something to pay their debt with.

@Kevin Randall I would second @Anthony Gayden no way they getting every last deal.

I've checked county tax records and this second building is included in the record, so I'm assuming it's legitimate.

You can always check out craigslist too as a second check.

Realizing this RE will have huge negative cash flow, how confident are you of market appreciation (property and rent) in excess of the negative cash flow as no one invests with a plan that shows them losing money on the investment.Final thing to consider is your likelihood of coming back to San Diego and how nice a home is it for you and your family. 

@Robert Penniston Check out MAREI events in OP the second Tuesday of each month.

From what I can see, many title companies object to: (1) the wholesaler not paying the second set of realty transfer tax; or (2) the wholesaler not bringing any money to the table.