Unfortunately, Covid decided to change my plans, and I made the decision to hold off, in hindsight it was a huge mistake and no one could have imagined that property values could have increased at such a high rate.

To the bank it's a good deal because there's 40% equity in the property.

In short, you ride the 'coattails' of the previous owner's taxes for the first year.  

Now, seems like a simple task- take the old door off and put a new door on.

I have a large network plus in depth knowledge of the process to get a project like this off the ground. 

Also, with a VA assumable, if the one assuming the loan is not a veteran, then the seller (veteran) entitlement will still be tied up in that property.

It will be easier once you have a good team in place and know the ropes

I think you would be wise to sell and use the VA loan for your new home. 

They'd be much better off being a Hard Money Lender and make 5 times that (and every repair to their "investment house" is paid by them...So, if you put $10k down on a property and make $150/month net cash flow your Coc Return (annualized) is 18% which is Very Good.If you followed that and understand it then keep looking for a deal.

Based on the growth in that area, I suspect I will be able to refinance within the 5 year window and not require any cash into the deal.