Also, suppose I only plan on holding on to the the home for 10 yrs, I wont be paying myself back in full and soley relying on inflation which isn't guaranteed.

DRIVING THE NEIGHBORHOOD WHERE YOUR DESIRED ACQUISITION EXISTS (driving for dollars): If you live in the market where you want to invest in, spend time driving the neighborhood where you want to invest: relying solely on public data records can be misleading as many property owners do not always provide accurate or up to date information on the status of their property.

The question also relies on answers to 1 and 2 since the more funds I have accumulated, I'm guessing it will give me a better chance to finance and close a deal.

Is this worth if my current plan is to stay for 3 years, and rely on appreciation?

If you rely on Zillow Estimate as a firm guide on value, you will quickly be out of business.

I've been told not to rely on online sources such as Redfin or Zillow.  

When you have an ample amount of experience in regards to how to do the math to achieve maximum profits, then you automatically realize you cannot rely on real estate agents for sound investment advice.

Do not rely on it for legal advice.

Many business owners relying on walk-ins have lost enough money that they are ready (or forced) to liquidate at or below asset value.   

I believe the rules for owner-occupied financing relies on the intent of the buyer.