This is wise. I know a cop who saved and saved, bought a foreclosed house for cash, fixed it up, sold it, bought another fixer-upper, and so forth. Even through the recession. He is now living in pretty nice digs. The trick is that closing costs on both ends will kill your profit in some areas, so you have to consider this.
If they want to sell they can pick up the closing costs ;) Plus they are lower with no loan involved - origination fees, etc...
I’ve been toying with the rental idea, but just can’t quite make the leap with the way things are.