We are purchasing a house with the intention of living in the house for a year and turning the property into a rental.

There is a HOA foreclosure i am interested in purchasing at the auction (Texas).

That ensures you don't spend it on other things and know exactly how much you have to spend on the next purchase.

That's two loans to purchase one house and is a great way to over-leverage.I also disagree with selling.

The biggest thing that sticks out to me is, if the property is in good enough shape to qualify for a conventional mortgage, there is a larger pool of potential buyer, so there may not need to be enough spread between purchase and ARV.

Quote from @Richard Hoyte: What is a good and or acceptable amount of money to have saved up before buying your first rental property I'm aware this can vary depending on the state/area but is there a rule of thumbThank you ahead of time  Hello Richard, Your down payment amount will have a lot to do with this.If you are going with the minimum downpayment of 3 - 3.5% , you'll want to have at least a total of 10% of the purchase price (to also account for closing costs) + 6 months in reserves.

Why do you think purchase contracts are so long and have such small print?

--So, S8 doesn't solve everything and has its own challengesRead more below (copy & paste):Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

We have helped quite a few military members purchase homes and then transition into SFR when they relocate.

If you need the capital from a rental for a primary home purchase and you wanted to side step cap gains, then the approach would be to refinance the rental not sell it.