First rental purchase senario questions

OK here’s what i’d like to do. please let me know what better options I should consider if i’m off somewhere.

My wife and I own a house with about $125-$150000 in equity built up. We also have about $20k in cash and more in other assests (stocks/mutual funds/ 401k/IRA) We would like to purchase a second home to use as a rental.

Since there’s two of us, can each of us have a primary residence to use for the tax exemption and do so with the second home? Would we have to live in the second home for some period of time for this to apply or is this not legal?

Next, we do not plan on owning the home for more than 10 years. I think our best bet is to get 100% financing with interest only payments to maximize cash flow while we own it. In orlando/disney area. What should our total out of pocket expenses be with closing costs and other associated costs with purchase of the second home? (just looking for guesstimates…just list any expenses that come to mind that you’ve had come up when buying a new home)

In the near future (after first house is purchased) we plan on selling our primary residence and buying a different home in the same area. Are there any issues with this? We’d like to purchase the second home same as the first as we want to keep as much cash flow and use as little out of pocket money as possible.

If anything sounds too vague or seems unclear, please let me know. I’ll update asap.

thanks again…

If I understand, the outcome you want is two houses
in Orlando ( 1 residence & 1 rental). I believe the simplest path would be buy a new residence, sell your current residence, and buy a rental. If you want the very lowest out-of-pocket expenses, you might buy a new primary residence, move into it long enough to decide you really don’t like it, then buy another primary residence you like better & rent the first replacement primary residence. A friend of mine did something similar when he found his replacement residence was much noisier on weekdays than during the weekends, which was when he toured and inspected the house.
(If you are concerned about paying tax on a primary residence sale, a married couple can exclude $500k profit on a house they have lived in 24 of the prior 60 months. ) (If you buy a rental and later convert it to a primary residence, you can exclude the profit to 500k also)
Good luck,