My question is- am I better off continuing to save and buy something bigger/better later down the road OR do I jump into this as a temporary primary residence and future long term rental? 

I have about 80k in savings, so I have money for the down payment.

Collect cash flow and save up.

@Amy Beth I currently live at home and have been doing do since I graduated so I've been able to save money and pay down some debts.

If your rehab costs are only $20K, you may be able to use the 203K Streamline loan which can save some loan cost.  

They are being purchased for asking price or above no questions asked, and quite frankly would not cash flow with the financing i have available (conventional/FHA).My question is this:Do i rent and save money and look to purchase a deal as an investment only property (25% down) or do I pay approximately $400 more a month to purchase a live-in flip?

Do most investors have their license and represent themselves to save the realtor fees?

You'll save 6% ($30,000) in realtor commissions if you sell directly to me. 

I do this all the time for investors trying to save money by using their own purchase agreements for off market transactions, and it saves a lot of money because the attorney will simply review it and recommend any changes for a very small fee.Truth be told, I've noticed that escrow companies prefer the standard CAR form that Realtors use, and I've had troubles with escrow companies trying to interpret custom purchase agreements in the past. 

There was a guy that did a post the other day who was 21 and already saved $100k.A lot of the times (this is not legal or insurance advice), but your assets can be adequately protected via proper insurance on the property which would included a liability policy, and then with an additional umbrella policy.Keep in mind, transferring a property from your personal name to an LLC could trigger the loan's due on sales close.