They frequently do their own evaluation of value and you don't wait for formal appraisals. 

I am waiting for a hot shot like yourself to argue “where the line is drawn” with the IRS before passing final judgement.

Or would you wait and try to find a good combination unit to live in / rent out, but possibly face +1 to +2% interest rates.There seem to be a few locations where I might be able to roughly breakeven if I move out 1-2 years from now and rent it out, but they are in suburban areas that far from DC, and as a single guy in his late 30's, it concerns me that I'd end up being a hermit.How would you balance lifestyle vs. investing at this point? 

Also....if you already own a property literally within 100 miles of where you are trying to get the FHA loan then the FHA will not let you get that loan.Other then that it is VERY similar to the VA Loan.If you're getting orders to another base....I would simply wait until you get there and (as long as it's 100 miles away from where your VA loan is) then use the FHA loan to buy a small multifamily.Live there for a year in the FHA property.....THEN refi out of your FIRST VA loan........turn it into a conventional loan.......and then Get a VA Loan at the new duty station that you got the FHA loan at.....then when you get orders somewhere else....REPEAT.I know of people that did this VERY succesfully when I was in the Navy and when they did their 20 years they ended up with 2 properties at each duty station every 3 or 4 years for a total of 20 plus duplexes that supplemented their military pension and literally were able to retire at 39 and 40 years old respectively.  

I have a motivated seller that's waiting for me to give her a cash offer, but I looked her property up online and it seemed like it might be already listed with a realtor.

I would not wait until you have a property under contract to figure out if they want to work with you. 

I love this site and all it has to offer and cannot wait to do my first deal. 

It might be a good idea to replace it sooner than later because if it dies during the winter and you want to switch to natural gas, you'd have to wait until spring.

I've made a few offers (and have a few waiting responses right now) but haven't closed a deal yet.

Wait, wait, I know!