You do not need to be a veteran to assume this mortgage as they no longer need this VA benefit.The difference between the loan balance and sale price (approx $95,000) would need to be paid for via check  at closing as I have yet to find a mortgage company willing to act as junior lein holder. 

I'm looking for recommendation to an escrow company that can close a "subject to the existing financing" without having the lien holder to approve of the assumption of the loan by the Buyer for a deal I have in Tacoma, WA. 

That is, don't buy any notes at first.Instead, get good at marketing for notes (that is, finding notes through either direct mailing from purchased note holder lists or networking through professional referral sources)-- I like the preformingnote space (the "ma and pa") note holders as I am good at finding them and I'm used to dealing with these types of people...a lot of the time, they need guidance and that's where I come in.

Fannie Mae Homestyle requires the repairs be done within 12 months and will have less restrictions than the 203k but you need to remember that the lender is securing your loan against the asset (this being your home) and as the note holder they want the work done to secure there interest in the collateral. 

You should make sure your state does not require you to notify the lien holder.

So discounted real estate company will survive and be profitable to its share holders?

As far as insurance goes, you can ask to be named as a certificate holder for proof of current insurance or just call the number on the policy.

But your QI for the 1031 can form a holding entity called the Exchange Accommodating Title Holder and actually take title to the new property to hold it for you. 

That being said, I might send a message to the note holders and let them know I'm interested in the whole building once he stops paying them lol...

@Christopher M. is correct that even in states that cannot discriminate against SEC 8, it is unlikely a voucher holder will meet their standard criteria, and as a result, they would be denied for not meeting the criteria, not because they have a voucher.