(I try to make a habit of always checking to see if I can get a discount.)Anyways after looking around and examining my situation a little more closely I decided that right now would not be the best time to buy for me.

This property needs a new Kitchen, Bathroom, and the rooms need to be rehabbed.

You hardly see a short sale in my area these days.There are many other ways to acquire properties at a discount.

In my opinion, lot investments are best in a hot construction market or if you get for deeply discounted price like at a tax sale.  

They gave him a discount, which when checking against room rates, was same rate on website.

There is a house that I see a listing for that seems to have a massive amount of Mold and water damage in the finished basement which includes a bathroom.

Additionally, if I write off repairs on my rental, will this discount my 'counted' income?  

It just needs the bathrooms updated, new kitchen floor and fresh paint everywhere.

you cannot get a 5+ unit with VA Financing, but 1-4 is acceptable.VA guidelines allow use of 100% of rental income to qualify (they dont have a 75% X gross rent rule that conventional does).This is a big advantage over conventional financing where the rental income would have to be discounted to 75% of gross monthly and "then," used to qualify.

Buying beat up properties that need work for large discounts, fixing them up, and selling them for more money than the purchase and rehab costed.2) Buy & Hold.