So I had to find alternative lenders. 

With regard to purchasing rental properties in a different state site-unseen, there are alternative methods in doing so. 

Your expectations are mostly correct... you're being quoted a portfolio HML-alternative rate that'll go to 80% LTV.

the additional 400-500bps in an alternative investment is nice, but not the primary consideration. 

Since this would be a specialized situation, I would use the Contact on the VA website to get the best answer, there are a lot of lenders that do VA loans but they don't specialize in them so they may not know about any fine print, or alternate paperwork not commonly used.

I still stick to my numbers, but it feels way safer that way.

A more stable of building wealth is to have as many rental properties as possible before I'm forced to retire from my physically demanding job, The safer route seems to be to pay off the mortgage rental as fast as possible, which I'm doing.

A more stable of building wealth is to have as many rental properties as possible before I'm forced to retire from my physically demanding job, The safer route seems to be to pay off the mortgage rental as fast as possible, which I'm doing.

LOL  now they were keen on real estate no doubt and my talk was on everything BUT rentals as Rentals are talked about ad nauseum so I make a presentation on alternative investing in the real estate space which given my career I have done a lot of .. so it was fun.. and not a pitch fest I got no business from it I just enjoyed doing it meeting those sharp young folks and thinking man is this a great company to work for.. 

I would say, unless something drastic happens, most towns with a decent-sized tourism industry should be a bit safer, so long as they are not limited to seasonal tourism.