Pay cash and then after 6-9 months do cash out refinance. - in this case, I will have more time to shop around for better loan terms/rates etc. 

Now you need to figure out how to find deals and pay for them.

I'll make a long story as short as possible:> House built in 2008, first owners used husbands VA loan to secure (220k loan), stopped paying HOA and bank shortly thereafter (current payoff 500k+). 

Don't know much about it other than the fact that it has about 1000 open grave sites and they also bring in revenue through digging and maintenance.

I'd not been there for several months as is often the case and didn't know it but they'd instituted a new policy where buyers need to show an official ID when going up to pay after winning that bid, this due to the goofs who were wholesaling or whatever and would put their 10% down and then use whatever name, so they could then simply call their buyers and find whoever wanted to buy it and then that person would show up for the confirmation hearing and pay the balance.

Since your not on site my fear is the risk in finding the right people that will be honest with you.  

I know this as I am paying the draws and getting inspections to proof it up..  

You also get mortgage pay down and tax benefits.Beyond that, you're not seeing the long term.

This doesn't somehow mean that they are going to stop paying the notes after 12/31/2024, right...?

You definitely want to check with your CPA, but in my state, if you lived in the home as a primary residence for 2 out of the last 5 years, you will not have to pay capital gains tax and can roll that equity into your next property.