Anyway, couple of things...have a "back up" plan, as there's always a lag time from knowledge to implementation to making the cash, so unless you've already got a good amount banked to live off of, I think Ralph's suggestion is great...either get an internship or a job in a real estate related field (property management, title company, etc.) and use that to increase your knowledge while you begin investing.

I would also consider just taking the capital gains tax hit and implementing the cash in other ways.

You will be going through inspection processes with your lender and the FHA is pretty stringent on the appraisals of the work.

I have even seen some landlords in the Bay Area implementing RUBS and have the tenants pay for water and sewage.

What investment strategy are you looking to implement?

Any investor considering the use of such a plan should be sure to educate themselves thoroughly and work with professionals not only for the basic acts of implementing the plan, but more importantly with regards to the proper usage of the plan and developing an investment strategy that will meet their goals while remaining in compliance with IRS guidelines.  

Keep in mind that the reason lenders are so stringent on their conventional loan requirements is because they're meeting certain criteria needed to, potentially, sell your loan on the secondary market.  

Any software you use, you need to setup, implement and be diligent in using it.

The Spokane City Council will also be considering the implementation of new, more restrictive landlord/tenant ordinances including prohibiting "discrimination" by payor class, mandatory acceptance of the first qualified tenant, rental property inspections and other new rules.  

I think it's great at the beginning to do things yourself in order to make additional money to move quicker and have the knowledge to implement better systems.