That will also play into it.

In this case, the seller is still responsible for his original loan, and then Ashish's answer is correct: interest deduction belongs to the seller.Once I re-read the original post by Anirudh, I realized that he left both interpretations possible.

I look for density plays that can be executed in an infill setting.

A VA loan is a good play, but it needs to be considered a residential property, unless someone understands more than me on the commercial side and knows a way to use a VA loan for a commercial property. 

We have some capital and are looking to possibly purchase a small hotel.

I’m all done playing those games.    

Ill be adding 250 sqft of space on top of updating everything and possibly adding another bathroom.

Quote from @Wale Lawal: @Paige GardnerYes, this strategy is possible, but it comes with risks that you need to manage carefully.

@Eric E.UBIT only comes into play in an IRA on leveraged real estate and running an active business.

Is it possible to buy a property in Seattle low enough to get 1%, yes.