Most are not distressed, however and estates sellers are typically aware of what they have and not rushed. 

How does that typically work?

Also, what are the typical requirements to qualify for the refinance?

I will be moving likely within the next 8-12 months or so, and my wife and I are planning on renting out our house, so that's how I figure we will start.I've got a pretty good gig going with the AF so this will be more of a supplemental thing for me at least in the beginning so I would say I'll probably be taking a more passive role to start, although I'm open to anything.I spent the last two years as a recruiter so I've gained some valuable experience in Human Resources, advertising and marketing, cold calling, as well as general salesmanship so I think I can find a way to use those skills in this venture.

In the CA example you are talking about an exceptional appreciation rate that is not typical and will not continue forever at those rates.

Not sure if you have a gain in it now.My recommendation is to separate the decision of your former house as a rental and deciding to move.  

Would you recommend I buy my first property as my primary residence now to gain the experience of home ownership or look to buy an investment property (out of state most likely)? 

I know that I can present an investor with a solid return on their money.Are there any creative methods to gain access to $10,000-$20,000 in order to cover my closing costs?

I estimate it will take .50% to .75% in rate increase on typical cases to absorb this.

BP is an excellent place to gain more knowledge.