It is common for Buyers to ask Sellers to cover some or all of their "closing costs and pre-paids" UP TO a set amount, which is especially helpful for cash-poor buyers who don't have much. 

or all over San Bernardino county?

If they do not move and answer the complaint, that is where your attorney will hopefully shine.I'm not certain of this, and your attorney will be able to consult better on this matter, but you may be able to hold the tenant as liable for some or all legal costs.Good luck and let us know how it turns out.

Although we would be living for free in the 4-plex if this deal went through (3 units pay 4plex PITI and primary house rent pays its own PITI), we can't seem to make it work in the banks eyes.We have no qualms using majority or all of our cash in the deal, but it would defeat the purpose of leveraging the VA loan. 

There is no fraud involved in supplying a true copy of one's federal tax return return -even if some or all expenses have been omitted. 

Then should that be just an oral agreement or should I put that into the lease to sign?  

Of course you would want an "add value" house that you can add value to by doing repairs or improvements and that you can do some or all of the work. 

I am looking to invest some or all of that money into an investment property in the Chicago suburbs.

Would like to get loan one rental or all three properties to add another rental to increase cash flow.

They can possibly help you out with identifying specific areas and would be able to do some or all of the rehab, rental, and management.