I'm currently a homeowner that is considering refinancing in order to help restore my parent's home which is currently vacant.

The VA will only guarantee (insure) up to $424,100 so subtract their original purchase price (unpaid balance not relevant until loan completely paid off and the benefits restored) from that amount, and that's how much the VA would cover.For example, if the original loan was for $250,000K, they would have $174,100 in benefit remaining.

When you move out, you will need to pay the cost to restore the property back to it's original condition, or leave it as is, according to what we agree to in writing."

Restoring wood.

My name is Steven Clough, I'm an aircraft mechanic specializing in the restoration and rebuilding of WWII aircraft.

Thank you all for restoring my faith in this community.

Once property #2 is complete, you want to do a cash out refinance of that property which will essentially restore your HELOC.  

What you are probably going to have to work with is restoration of your previously used entitlement if you plan to keep the properties the prior VA loan has been paid in full, but the veteran has not disposed of the property securing the loan.

I can't help on the legal side, but be aware of how involved fire & smoke restoration is.

Great job on the restoration!