However, an underwriter may suspect abuse that another purchase in this situation may not satisfy the mission of the VA loan if there is not a reasonable explanation of why you intend to occupy the neighbor's house.What does this mean? 

My only fear would be the condition of house after years of college student abuse, however that may only be a fear driven thought due to the fact that there seems to be many remidies for that.

Maybe one with elder abuse experience. 

5 - How can I make sure, that the tenants will not abuse the fact that their electric, water & gas are being paid for?

Let's ignore concerns about bad actors abusing the system or bots flooding courthouses with faulty, automated filings.

So for an independent LL to enforce their contract that is their right and it does not make them bad people or bad landlords its how they choose to run their business.Having owned a bunch of rentals Over 200 SFR's I know myself personally I am a terrible landlord I am way to easy and cave way to quickly and tenants abuse my good nature. 

This is the simplest method, but it also means your tenants are more likely to abuse the utilities by leaving windows open with the heat or A/C running, leaving lights on, ignoring the toilet that constantly flushes on its own, etc.3.

Your Tenants destroyed it over a 20-month period through neglect and abuse.

If your local governmental body has records that the animal caused human harm, then you may have an argument.IMO, the big issue with ESAs is that the concept is largely abused.  

Any tool can be used correctly or can be abused and get an investor in trouble.