I have a client that just started in Phoenix and doing well.

Also many title companies TODAY require a KNOWN notary.. so either they do it or they send you a vetted mobile notary that will cost you 150 to 200 for each sig.and yes this is why you dont buy the way the OP bought.. now he has a to chase his tail all to save a few bucks up front on title and escrow fees.. 

Since you owner-occupied it, doing 5% down on your conventional would've both lowered your cost of entry (saving cash for repairs), and juiced your CoC returns even more.

The strategy you are implementing we like the call the "Holy Grail" of house hacking haha; purchasing a small-multifamily to house hack with a VA are powerful tools, and done correctly can really help kick start and build a great porfolio.

What are some states that i can start in? 

Sure it starts getting warmer out and people (buyers) start looking again for homes. 

It is nice to start conversating with people before we get down there so we can make the most of our time.

Great place to invest, though I don't recommend out of state investing when starting out.

Please share your advise/opinion on a possibility to utilizing the space.I’m also thinking about upgrading the basement but not sure where to start.

Hello Faris,Any book published by Bigger Pockets is a great start.