My plan is to renovate my current home, turn it into a rental, and purchase another property to live in for a few years, likely a fixer-upper.My current home needs around $25k in renovations before it's rent ready.

Now if your property made it on the 10 o'clock news in your town then you might have some stigma.

The credit committee is usually made up of local people who are familiar with the market they are in.

We have more time than money right now; if I'm still painting in a couple years I've made a lot of mistakes.  

If the buyer wants it bad enough, them to come back in a year when you're ready to move out.I will say this too.

That's just one thing I was made aware of as a possible variable to take into account. essentially I'm looking for hidden rental costs that I'm not aware of.

What made you interested in investing in this type of deal?

I'm ready to connect, network and chat with everyone here!

@Sam Deb It can be done for sure, but I you have to factor in renovations taking longer than 3 months )especially in hot markets where good contractors are hard to find and might not be ready to start as soon as you are closed), a 6 month seasoning requirement for some lenders and 12 months for conventional, that you may or may not get ALL your cash out (doesn't make it a bad deal), the bandwidth to run multiple projects at the same time.... 

I don't see how you could have gone higher than you offered and still made any worthwhile money with those numbers.