Avoid PMI and then go to a local credit union and get a heloc after closing to gift the money back.Have this as a tool in your tool belt but pursue use of the 3.5% FHA, knowing that you will be at a competitive disadvantage if you are competing with non FHA buyers, then you can call in the favor from your gift person.Just know that if someone gifts you down payment money, your bank will require them to sign a letter stating that it is in fact a gift that doesn’t need to be paid back.

Also, connect with local investors—they’re a great resource.

I would say that the value he brings is finding the deals, doing an initial diligence, having a local team set up for renovations/repairs/property management as well as knowledge of the neighborhood.

In our area 67% of tenants will move locally because of issues with maintenance - which are often issues with communication.  

Go to BUILD YOUR TEAM at the top of the screen and look for local investors or meetups in your area.

Go to BUILD YOUR TEAM at the top of the screen and look for local investors or meetups in your area.

With that in mind, my first idea was to buy a condo or a house in my local area (Palm Springs, CA) and use it as a long term rental. 

I also recommend a bank that has local branch that you can go into vs having it 100% online.

Based on the information that you shared, if you haven’t already done so, I recommend connecting with a local expert.

I'm with @Huong Luu but would add join a local REIA and find some PMLs they are always hanging out at meetings.