Plan to make some tenant improvements to push rents closer to market rate for the area.

They are just going to use their 2nd VA loan to buy their next one while this one is tied up. 

Stop reading if you want.2) I couldn’t guess what “There is a 6 months of grace period before interest payment begins” means.3) They call their $3555 charge a “Loan Fee,” stated a few lines up as 2%. 2% of $235,000 (loan amount) is $4470.4) Do you seriously believe the loan fee, “… IS 100% REFUNDABLE IF THERE IS ANY DEFAULT FROM THEPART OF THE LENDER OR IF THE BORROWER CHOOSES TO TERMINATE THE LOAN.”5) It’s okay to pay an appraiser directly.

If I got a home equity loan for Property 1 and used the proceeds as downpayment for Property 2 and then got a 2nd loan for the remaining 75% purchase price for Property 2, when I sell Property 2, can I use the Property 1 loan as part of the cost basis for computing Property 2 capital gains?

Unlike a mortgage the interest on your loan will not be tax deductible.

Negotiate seller concessions, consider affordable markets, and focus on long-term equity growth through appreciation and loan paydown.

I doubt he'll be able to quality for a loan (VA) with just his income. 

Two things I remember that probably don't happen today: -First property was a no-doc loan, technically low doc because you still had to provide information but with 30%+ down pretty much anything you wanted was yours.

Initial Financing: Used a hard money loan (HML) with 10% down, interest-only at 10.95% for 1 year.

Business loans typically won't let you purchase a property if you read the fine print.