If you are trying to come up with a way to finagle the occupancy requirements while using an amazing loan (that you earned based on your service) like a VA, I would say you are starting off on the wrong foot.

A number of our offerings are secluded; many vacationers are looking for that experience.

This might give a one-time (non-scalable) boost to cash flow, offer multiple value-add options, and allow the house-hacker peace of mind, via the assumed mortgage, in long-term breakeven or positive cash flow in the event that the value-add plans end up not being executed, and/or the person has to move out, and rent by the room or STR become unavailable for some reason at a future date.

They are both a bit pricey if you're not all in and closing deals, but they also offer a 7 day free trial.

However, if you can identify a reinvestment opportunity that offers significantly better returns or aligns with your goals, selling through a 1031 exchange could make sense.

Quote from @Alecia Loveless: Something is better than nothing, but I would offer more like $250 or 1/4 of a month's rent.

I will also have my agent there with me to offer comps to aid in their appraisal if they are receptive to it. 

@Augusta Owens first, thank you for your service!

If you own 25%+ of the business paying your w2, youre still self-employed.There are bank statement/1099 loan program as well, which is what you have been offered.

In a situation where you were doing an arbitrage (renting it from the owner, then yourself re-renting it to someone else) your costs to renovate/fix it up while you're using it would be able to be capitalized and depreciated by you once your rental was in service (available for rent to others).