Once I sent out 25 offers through realtors on houses which I saw physically in person; before I can get 1 accepted. 

Others are commenting on the legality which I question, but basic physics tells me something's up. 

I strongly recommend spending as much time as you can afford, physically present in the neighborhoods you're considering. 

Due to physics, there is no way to overcome this barrier.

With the long term rentals, all rent payments are done online and the only time where we need to be physically present at the property is during times of turnover or major repairs. 

Key is getting the property to appraise high enough that you have 20% equity after the increase in property value.5) Once refinanced into a conventional loan, you are eligible for another FHA loan and can repeat process (Including physically moving into the next property).

Here's how I do my due diligence:1) Portfolio matching: (takes 30 seconds per deal)a) Have an educated opinion on where you think we are in the real estate cycles (financial and physical market cycles)b) Then only then pick the strategies, capital stack, and specialized asset subclasses that make sense for that opinion.

You have legal if not physical possession.

We don't have a physical office, and I'm not really interested in managing agents, so I don't recruit.

Then there is the influence of profitability that comes from they way an owner occupant will incur expenses from living in a property verses the way a renter will incur expenses living in a property (physical depreciation).Finally there is the expense of management.