It does illustrate a problem of the decision maker not being the payer.

If the new home purchase is > the remaining amount of entitlement left, the VA buyer will have to come if with 25% of the difference from the "maximum" to the purchase price.For your exact scenario, look at this screenshot to help illustrate the concept of split entitlement and down payment on the difference:

I'm trying to find an illustrative calculator that spells out the cash flow and return impacts of these options.Currently the rent market is cash flowing less than 0.2% on the capital I have in it, so I'm leaning towards selling, and the offer is off-market and a realtor is handling the transaction for 4%.Offer: $185kDebt $108kDown payment 20%Rate: 7.25%If I post it for sale, realtor fee goes from 4% to 6% and the market isn't fantastic right now, as rates are high and the condition is not premium.

These are on two different ends of the spectrum, far off from what you're proposing, but it illustrates the point of stretching your dollars and maximizing your ROI. 

This example is just to illustrate how to reach a simple goal working of $1,200 a month in a high tax and purchase price area.A for the hard money rates, 9% is available from the lenders I work with.

Even if I was in your situation, it makes absolutely no sense financially and I will illustrate this with a simple calculation.I don't know your age but I assume you are between 20 and 80, so 50 on average.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350Insurance = $100Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250Insurance = $100Association Dues = $25Total PITIA = $1875Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23Lender terms and fees vary widely. 

A residential rental activity is a poor example to illustrate this concept since rental expenses are deducted from rental income and whatever is left over is taxed, regardless of whether there is a business entity in place.

Ignore the wisdom of others at your own detriment.It really all comes down to a point made by Daniel Khaneman in Thinking: Fast and Slow regarding two sets of norms:Market NormsRelational NormsA good illustration would be this:  if you ask a neighbor to help you move a couch they'll probably help with gladness. 

My attempt was to illustrate that a trust offers no advantages for the distribution of dividends to minor children,