If you have the other income and can afford to keep rolling your RE profits and additional money into growing your RE empire for the long term then there is no rule saying that you shouldn't or can't do that.

The issue lies within the inability to currently afford a bigger house in the area we live.My W-2 issues annual stock distributions and I just received my first one (40K).

I have great credit, killer salary, and a bunch saved up but still can't afford a 20% down payment on anything over 600k. 

Investing in multifamily properties in Philadelphia is popular due to the city's steady population growth, job opportunities, relatively affordable property values, and solid rental demandPhiladelphia’s multifamily market offers a range of opportunities, from high-end neighborhoods to up-and-coming areas with great cash flow potential.

(I have found a 2-1 that I can afford in a conservative 7% appreciation market)I’m also thinking about putting more effort into lead generation beyond just Zillow to expand my options.

If you want to buy real estate and can't come up with the down payment funds there's two approaches:  (1) save up until you can afford the down payment; or (2) raise LP capital*.

Do I buy as low as I can to afford mortgage with 0 down and use 300k for big bear or put a larger down on primary home.

SarahI’m gonna give a slightly different answer than others, figure out where/how you want to live within reason & than figure out a way to use strategies to make that somewhat affordable but using a strategy 1st approach is really risky in this market, because it might take 4-5 years to even break even vs renting, so you want to find a place you’d be happy to live for 4-5 years & than find strategies like house hacking that make that more affordable. 

You have to explain it to the listing agent who doesn't get it, who then sends that to the seller, by telling them it's not that you have no money, but this is a right afforded to you based on your service to the country and you can also show proof of funds that you have money, but are choosing not to use it as a downpayment because you want to do reno with it.I would use your VA, that's what it's there for.

And if they use public funds the property has to remain affordable housing for THIRTY YEARS which is insane.