Then it's on the seller to provide it to you so that you can inhabit.

The properties basement and entire kitchen area are currently inhabitable due to the water damage, she cannot access same. 

You're absolutely right about REI falling flat with many people in the military, as well as among my civilian friends, but I keep talking about it to people anyway.

But please, each deal should stand up on its own merits, at civilian investor interest rates!...

If that's your last $35K, you may want to keep some of it as an emergency fund to help your transition from military to civilian live. 

Civilians move jobs all of the time for various reasons and if you decide that the military is not the right path for you I would say to take a few weeks to weigh the options and potential career paths before making a final decision.

You may see some higher cap rates but beware of the property or the tenants that inhabit that property.  

Another lawyer to fix a problem with this landlord isn't going to get you anywhere,, the only other option is to pay your rent to the court it is put in escrow, send owner notice to fix the problem, take photo's and call city for inspection of area of home that's not inhabitable, so basically the landlord can't kick you out as long as your rent is paid on time to court, he can get the rent once the problem is corrected from the court but then he and you still have to deal with living together yet apart and he's not going to extend an olive branch if he can cut the tree down and give you proper notice to vacate..MOVE now when you know what's up and good riddance to the problems

A buddy of mine and fellow Marine is preparing to leave active duty and begin his civilian career.

First because as others have stated, those that separate the military before 20 years will have something in a retirement to show for it now instead of starting behind the 8 ball compared to our civilian peers.The second reason I like it is because of the lump sum payout.