There are a lot more details that go into two VA loans and the downside but transitioning into a conventional loan on the  investment refinance will save you a lot of frustartion down the road.  

But in this case what is the difference from the buyer prospective, other then they are getting a better loan/ equity situation then conventional financing?

Typically Conventional will end 42% of DTI and FHA can get up to 51% DTI (and based on your credit score I think you should stretch to that 51%) Just a few things to start thinking about as you are working through the process. 

9) adding multiple ADUs or adding an ADU to a quad looses F/F conventional financing.

Looking ahead, once you secure a tenant, perhaps this is something that should be explored to make the next lease up easier.Also, @Caria Mitchell raised an interesting point in saying: We are experiencing a shortage of qualified applicants, I’ve noticed non-conventional applicants vs qualified applicants that don’t have a voucher or some form of subsidy. 

Fix it before the next month.These are mostly conventional loans.

They refused to accept my terms and said I would need to put down 30% versus the traditional 80/20 with conventional terms.

you don't buy with long term / conventional financing and then refinance again into long term / conventional financing - many properties are too distressed to even qualify. so the "interest rate when purchasing" is irrelevant - the deal either works or it doesn't.

@Nick Belsky thank you Nick, I would love to speak about non conventional avenues.

Paying a f/f conventional loan early is boggling to me.Best wishes