The second is that they are recommending tax fraud. 

It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.Make sure your property manager is a licensed real estate brokerage.Google Clayton Morris Scam and/or Morris Invest Fraud for a cautionary tale of what not to do when buying turnkey real estateUnderstand you can not eliminate all risk, only mitigate it.

If you have two identical 4-plexes sitting next two each other with different rental rates, they are typically going to sell for about the same amount.

You can use the VA Renovation loan to purchase a primary residence that you intend to occupy. then you can sell it down the road if you so desire, but you must intend to occupy the property as your primary residence, and you get close to crossing the mortgage fraud line if you buy the home with the sole intention of flipping it.You can't really do a live in flip with the VA loan where you do your own work either, because the VA loan (non-renovation) won't let you buy a trashed house, and the VA renovation loan requires you to use a contractor on the Dept. of Veteran Affairs registry.Hope this helps, I have two articles on BiggerPockets that should shed some more light on the VA loan if you would like to read more!

All 3 buildings are identical with 10 units. 6 one bedrooms and 4 two bedrooms.

They have a bunch of multiple choice questions to prove identity, like which one of the above seems like a correct county you might have resided in etc. 

If you start in summer you will lose half of that year on your tax returns and it will make it seem as your job doesn’t pay well.Of course you would need your employer to falsify your start date, but most businesses will do to help their employee achieve his homeownership dream.The fact that Canadian banks can’t verify tax returns makes it very easy for mortgage fraud. 

Almost seems like there should be some type of insurance policy against electronic fraud.

Ignoring the ethical ramifications (and likely fraud) of leaving a homestead exemption on a property you no longer live in, there is no requirement of maintaining a homestead exemption on a property under Sec 121. 

Claiming that it is for the purpose of a loan and then not living there would be mortgage fraud.