Cash Flow and Depreciation Write Off Lessons learned?

Hey all, I have several off-market deals (various cities) and am looking to build out a larger network of buyers.

I am interested in BRRR's, off market properties and flipping.

For an FHA loan, you only need 3.5% down but if you're going to invest out of state, you won't be able to use an FHA loan unless you intend to move & live in the property. 20% down is required for a regular conventional loan.I started off as an out of state investor living in CA.

Would I be able to knock down and build a new home and once I sale, I use proceeds to pay off the first bank? 

My issue is that I come from a low income background and have fought my *** off, pardon my language to get to where I am now and comfortable.

At $1200 monthly rent after the increase, It would still be cheaper by $100 for them to stay versus finding a similar home, but they may not see it that way and I don't want to piss them off or make them leave because a $100 increase could be a shocker. 

If this is the case I would hold off until you see a monthly payment difference worth pulling the trigger on.

I found an off market 4 pack of houses that seem to be in great shape.

Would love to learn about what you are looking to specialize in.