I have a blog post on biggerpockets where you can read more about the strategy of buying a home with an assumable loan - https://www.biggerpockets.com/forums/922/topics/1175338-maxi...I would also keep in mind that many VA buyers in the area were recently bitten by the market. 

Another time after the buyer had their priest come and bless the house, at the last minute decided that house did not have the right feng shui and volunteered to forfeit their $10,000 deposit. 

Its a terrible deal, max I would pay is 250k, there is a reason its not selling, 

The loan max is a little low for high priced RE regions like San Diego, but it may be possible if purchasing properties that need some rehab. 

However, I can’t condemn a method of financing that has proved successful in many of not most instances in allowing participants to accomplish their goals because it’s being misused by some disciples of irresponsible real estate “priests” 

At the end of last summer, I pulled $50K from my Def Comp (my max). I

Your DTI max is 43%, so with being very negative on cashflow, that means your regular income would need to be able to support it but at least the option is there. 

Here are the details:Bought in 2015Owes - $45kNeeds additional $20-25k as a down payment on the new house for equity.Rate - 6.125% (Adjustable Rate Mortgage) Max is 8%PITI - roughly $700/monthHouse is in great condition so no rehabAsking $175,000, could sell on market for $220-230kRents - $1400-1600How would one structure this deal?

The most powerful priest on the planet is suffering for God and is possessed by Lucifer and the fallen angels.

I'm new to California and I know the state is not landlord-friendly so I think its hard to raise rents to market value (max I can do is 10%) is that right?