So I'm looking for some advice, settle in this is a long one.I was lucky to pick up two house in Grand Rapids a few years ago before prices shot through the roofHouse 1 has a 43k note and could be sold for 120K (I've lived in it more than two years with in a 5 year period so I can get out of the capital gains tax) leaving 77K in equality, but the house is currently nets $700 a month in rent.House 2 is right next door, has a 53k Note on it and could sell for 110k, leaving me with 45k after capital gains tax.

Very useful for vacant periods and keeping an eye on tenants paying their utility bills.For water, I keep them in my name and bill the tenants, either using RUBS or directly if its SFH or already submetered.. 

If you think the broker will educate you on values, then it may be a good idea.

Is there no way around the "seasoning period"? 

Will:After a long career in the San Francisco Silicon Valley real estate market, I moved to Greenville, SC 3 years ago and have started investing.I believe one can achieve decent cash flow and solid appreciation.Happy to help educate you about the Greenville market.Arn

If I were to get this house, I would buy it with an FHA loan and live in it for a period of time while doing improvements until I can refinance it into a conventional loan and then potentially turn it into a rental.

Standard 203(k) Financeable Repair and Improvement Costs and Fees The following repair and improvement costs and fees may be financed:  costs of construction, repairs and rehabilitation;  architectural/engineering professional fees;  the 203(k) Consultant fee subject to the limits in the 203(k) Consultant Fee Schedule section;  inspection fees performed during the construction period, provided the fees are reasonable and customary for the area;  title update fees;  permits; and  a Feasibility Study, when necessary to determine if the rehabilitation is feasible. 

They also aren't properly educated and have no idea what they're doing. 

—If no longer in contract due to seller’s inability to deliver clear title on time, he gets his EM back....period.

The stress of juggling my day job (in Commercial RE) while building to critical mass would be trying, and essentially "selling" myself and my services for a period of time are the obvious drawbacks.