The lender's AVM valuation came in about $20-$30k above the value of my home. 

People sell homes for infinite factors.

We kept getting outbid on homes and opened up our search.Still, we started looking at investing in rentals in A2 but realized the cash flow was thin.

@Prabhash Shrestha this is going to be tough, I analyze a ton of deals for my investors and most properties just don't make sense and it's not getting any better as home values appreciate and rents aren't keeping up.

My best friend is moving into the house alone; her son will reside there during summers home from college. 

There are programs that let you buy an investment home as an resident alien, or Foreign National.You can focus on a DSCR program but in most cases need to have a credit score established best to be above 720.

I still haven't purchased my first home.

I have a single family home renting furnished for a very high amount for the area.

Do I need to do a home inspection prior to purchase? 

I finally saved up enough capital to purchase a decent town home or condo in Las Vegas.