Will this be considered as an investment property by the IRS?

If you want to defer all tax like you have to do two things - purchase at least as much as your net sale (contract minus closing costs) and you have to use all of your proceeds in the next purchase or purchases.As @David M. says (Mr Foster is my dad by the way David :). you can purchase less than you sell and you can take cash out but when you do that the IRS interprets that as taking profit first. 

@Gaetano Ciambriello - one must be super determined to change primary home to build this type of asset base.

@Lonell Slaughter, 1st thing to do is get a title report, or at least a preliminary title report for the property house so you know for sure who owned it and what if any loans, liens, or other encumbrances are on the property.  2nd Thing is to determine whether the owner (your Great Aunt?) 

The lenders determined that it was a student rental because of that I had an issue getting financing.

See IRS publication 523 

I can crunch the numbers myself and determine if property is a good deal, but just need agent's help to find deals. 

How do I properly determine the market value of my home ?

I've got a seller allowing me to do owner finance on a 240 month term with a 2% IR, that will balloon in five years with zero percent down.

Reserves will be determined by the Automated underwriting which will look at the overall strength of the Credit package.