Will I get conventional financing and rates?

My wife and I own our home (~150kish).
We would like to start buying rental property,but hate debt.

Here’s the plan(to be implemented in 6mos/around march)

We’re not in love with the house anyway so we’re going to rent it out.
It should get in the 650-800mo range.
We want to buy a 35-65k starter type home and move into it.
We plan to pay at least 20% down and get a 5-10yr fixed rate mortgage.
Since we plan to live in it,i’m assuming this will allow me to get a standard mortgage for primary residence/owner occupied.
That will allow me the better interest rates that are prevalent in the current (and hopefully future) market.
Rent on our paid for home should easily cover mortgage plus some,not to mention we could throw another 500-1k on top of it (of course keeping retained cash in the bank for an emergency fund)

How will this effect our financing? We have good credit,but not sure how long it will last as we have no payments whatsoever to keep that credit on top.We of course own the home and all our cars etc…
Our yearly income is around 40-48k depending,we keep around 10k+on hand for emergencies.

What kind of issues can we anticipate with financing? We WILL NOT use our paid for home as collateral,and we don’t plan to cheat the bank-we will live in the home till it is paid off in a couple years or less and move on to another one.
Is there anything I should be thinking about now?
(Please don’t say get my credit score up,we don’t buy into the credit/debt crap-we live just fine below our means)

Thanks for any help.

Real estate is no better than any other investment except for debt. Real estate pays 12% or so no matter how you slice it. Debt is how you get rich in real estate. You see debt is not debt. There is consumer debt which most people think of when they hear the word debt and there is business debt which makes rich people rich. Business debt is how you leverage yourself to make money. For example if you have $100,000 you can buy a house free and clear and rent it out for $1000/month. You now control $100,000 worth of real estate and you make $12,000 per year. That is a 12% return on your money. 12% is what every financial investor tells you is made in the securities market. If you take and put 10% down on that house you then have $10,000 spent and a mortgage of $90,000. You have a note of around $700/month. You rent that house out for $1000/month so you have cash flow of $300/month. Over 12 months you have made $3,600 for the year which is 36% on the money you have in the house.

But since you have $100,000 you do that 10 times and now you control a million dollars worth of real estate and you are making $36,000/year with a 36% return on the money you have employed.

Consumer debt means you bought a refrigerator and you paid for it on time. It cost you money to have consumer debt. Business debt allows you to become rich.

Your credit should not be used for frivolous things. It is business tool. Get the score up for business purposes not so you can buy a bigscreen TV.

Now if you don’t ever plan to get rich you can do whatever you want to do. If you want to get rich get the score up.