If you're NOT living on-base, only 3-5% down should suffice, meaning you may be able to purchase two properties for a total of 3. 4- Sell the LO property after two years, and use the proceeds to purchase another two investment properties.

I thought the whole idea of a sandwich LO was to give the seller a small option payment and collect a bigger one from the buyer.

Jared,Another quick tip from a Buyer Agent/Investor (who love's L/O), First find out how much $/commission the listing was for.

You can LO, wholesale it, retail it, seller finance, whatever fits.

To be a down payment it would have to go toward the purchase price, but since you're already buying for the mortgage balance, it can't go toward the price.The payment is pretty good if you want to sell it on an LO, but as you've already said, you need more than a year.

The proper way to do this, as a L/O, is to have 2 contracts. 

But, I don't know what program your LO is working with, so hard to say what is going on there?

You'll go to your Veteran's United LO and say, "Okay, I've found my house." 

@Nicholas Butler  LO is right in your loan scenario if he not going to live with you. 

There's more to the L/O than just this, but to answer ONLY this question, you will lease the property from the seller for less than the current rents...which you will collect now.