So I am a veteran and I am eligible for a VA Home loan.

That property has such great fundamentals already easily breaking even before you do the value add.

The principle amount is $19,000 the rest is interest from previous years.To be eligible for the tax lien reduction program, a new assessment will need to be done on the property.

Once you pay off a loan it re-sets your eligibility.

But once we move into the residence and no longer rent it out, won't we no longer be eligible for the capital gains exemption?

These are approx but close numbers, just trying to get an idea.ARV $225Current appraised value $200Principal on 1st Mort is $98Current Heloc payoff is $48So when I refi, I assume I'll only be eligible for about $175 (75% of current value) I obviously want to payoff the current Mort and HELOC, so with the equity I have left (about $25K) should I just try to get cash out or establish a new HELOC?

The three units he does not live in would not be eligible for the primary residence exemption - only the one he occupies. 

Some, we do work to make the properties eligible for loans.

Do the smart thing and find a new job, don't invest the money until you have a better understanding of the fundamentals.

Sorry David, lease options are not eligible for the Pathway to Purchase program.