The appraisal for this deal came back at 15% below purchase price due to a lack of suitable comps in the area, and a discrepancy on what true market rent for the space would be (despite the 10 year lease already in place.)

Then I can move in and work on the house for 9-12 months paying on the HELOC, then once its in better shape to qualify for a bank loan (and hopefully after some forced appreciation) I can get it into a more suitable long term note.

If a classroom setting is more suitable, you'd have to look at how best to work class attendance into your military schedule.

Plus, they are normally going to be in places people are wanting to visit or vacation, so if you want to take a trip to check on your property it's not a drudgery!

I'm thinking about approaching them to buy them out of their lease and perhaps even help them find suitable housing.  

Where to find property that suitable to rent to section 8 tenants?

Probably purchasing within a month or 2 if I find a suitable property.

All the Engineering has been done so now I'm now looking for funding.This is an area where many SF Bay area people move to and retire, new houses of this size and on this much land are going for up to 650K.Does anyone know of or can recommend a suitable lender for this type of project and a Builder or Lender / Builder combo if there is such a thing?

Or are you looking to purchase something else that is suitable for house hack? 

is it a mess or suitable condition.Then you plan on what it needs to be turned, paint, and repair supplies,,I had 120 units,,1 & 2 br's,, average turns each month 5 could be 6 to 10 during the summer..