I'm figuring she could split the $30K equity between the 2 mortgages and let her tenants ($600 rent each) continue to pay off the remaining balance of $15K each.

It's a threshold and exposure that I have used for years, and it works for my goals.Assuming $500k is in that market, I would take the remaining $500k and put it into real estate syndications. $400k would go to equity projects and $100k to private debt.I presume I would do 2-4 syndications, depending on the variety that is out there, and the kind of relationships I had built.

Could I remain in good standing if I didn’t rent the unit I was occupying?

However, the sellers are estimating the remaining units will bring in around 1000-1200.

If you're able to buy the property you want in Alabama with your remaining VA entitlement, I don't see any reason to mess with your existing mortgage in Kentucky. 

I have a tenant who is a Texas licensed sales agent.She messaged me that she would like to buy-out the remaining 8 months of her lease due to a bitter divorce.I highlighted the cost to to include holding cost and cost of leasing.Sensing that this may run to a couple of thousands,she is offering to list the house, do showing and continue to live in the house until a new tenant is found.I am just not comfortable with this suggestion, I will rather list it myself being a realtor and let her do the showing instead.I am trying to keep the relationship strictly landlord -tenant without any complexity.I am just curious what you guys would do or did in a similar situation.Thanks in advance

I wouldn't want investors to be robbed of the benefits of diversification and potentially higher returns because of something that remains the exception rather than the rule if you are careful.

Would it be a possibility to have partial debt re-payed and also remain on the property for equity when selling property or being bought out after appreciation through 5, 10, 20 year period? 

You could leverage the equity to pay off the debt and use whatever remaining to purchase a rental?

The Sale price of ,000 shall remain the same for closing purposes.The undersigned agrees that they have the full authority to execute this document personally and or any organization they represent or will represent.