If you can get one I’d try to go traditional mortgage, the dscr often has pre payment penalties, so you often pay significantly to refi if rates drop.

I started the process of a portfolio loan with Corevest and ALMOST closed with them, but due to me being a foreign (non-US) national, they were demanding a lot of things like cashflow management (all rent goes to them first, I had to ask for draws to pay for repairs), they wanted monthly reporting, and they wanted me ask my property managers to sign away their right to be paid management fee first (basically Corevest wanted to be paid before everyone else).

I would have the current owner provide you proof of deposits for the last two years for the rent receipts (look for steady on time payments as well as consistent amounts.).

With my equity I could easily get  the down payment for a rental, as well as I qualify for the VA loan, and would like to take advantage of that.I guess my question is should I focus on just one strategy, or should I just do whatever the market throws my way, whether its a rental or a flip.

Make sure it is a regular lease and that none of the lease payments are counted toward the purchase price. 

Most investment properties require 20% down ($80,000 on a $400,000 property) and you get 7.75% interest for a payment of $2,293.

We'd estimated rent to be around 4000/month – after mortgage payments and property taxes, we'd be left with only $700 per month of cash flow.

We lost so much money on every property due to non paying tenants and (poor property management) that we couldn't evict for over 2 years.

How much of a down payment is needed?

Anyone get a straight answer from property insurers regarding insuring improved property comprised of solely legal non-conforming buildings?