I bought this residence with my VA loan but realized I should have used either conventional or FHA due to the low cost of the home.

And it needs 40k in work and the ARV is 55k.Project cost = 50k - 60kARV = 55kThere's no profit margin for a lender to feel comfortable even thinking about a loan.The problem with these micro price points is that almost no lender wants to even be bothered with them.I always tell people if you have 30k, then you can do a low price point deal in a market from Pittsburgh to Indy. 

We are cash flowing over 2K a month and the house has appreciated to high 300s-low 400s if we were to sell today.

We aren't zoned for a campground or RV park nor do we want to pursue changing the zoning to that, but keeping it low-key and low-density it doesn't attract attention, nor are we putting massive cap ex into it.

So the probability of someone replacing their W2 income is extremely low.  

I wanted to get started in investing in multifamily real estate in 2022 to take advantage of low interest rates and rising rents.

Despite its high purchase price, the neighborhood's strong market demand and low renovation needs made it a promising investment for maximizing profit with minimal turnaround time.

It’s building equity in an appreciating asset with a low 2.75% mortgage.

That, combined with hidden repairs combined with self-managing a low income could all construe to thousands in losses. 

These cost about $70 at Depot or Lowes.