Your seller is clearly an investor, and not a motivated "civilian," so that's one BIG strike against.And yes, these terms suggest he must have seen you coming: No way would I pay 44% down for 24-month financing at 10%.

My intention was to rent to sailors anyway, so lucky the civilian factor won't affect me too much.

My wife is also a government employee with stable income, and I have already aligned a position to join the government civilian sector upon retirement.

I have access to a decent amount of capital that is currently earmarked for transitioning back to civilian life.

A rental property is placed into service on the first date that both of the following occur simultaneously: (1) the rental is advertised, or held out as, available for rent, and (2) the rental is in habitable condition and ready for occupancy.Something to examine with your tax professional.

Then they broke something and claim inhabitable.

If you got a conventional loan to purchase a fixer that needs money to make inhabitable then you have ALREADY achieved a unicorn that a LOT of investors are looking for.

As long as my intention is to, "inhabit the property for one year" if I move before that what are the potential consequences? 

I did some googling and found this document: https://www.mass.gov/files/doc...quoted "ceiling heights in habitable basement, including drop ceilings, shall be a minimum of six feet eight inches".

Last weeks Action plan was to contact property Managers and start building my Team.I am currently in Germany as a DOD civilian, so the time difference creates some challanges to say the least.