If I were you, I'd take advantage of VA loan and either buy a primary residence (if that's what you're looking for) or invest in some rental properties in the main land.

With a budget of $500,000, you may want to consider exploring other markets like NC, TN, VA, MA, etc (areas with strong rental demand and potential for appreciation) where your budget can offer more profit for you. 

At least this is what I thought, I never did a paper comparison of both tax strategies.In a real real estate business doing wholesaling and fliping, where there's driving expense, buying of software, monthly fees for (too) many services like VA's, call centers, out bound dialers, yellow letter mailing expenses.

Most of my rental properties are elsewhere (Houston, TX, Richmond, VA, Poughkeepsie, NY, and central FL), but my experience with Niagara Falls has been enjoyable so far.

I currently have a VA loan in Fayetteville, North Carolina.

I am a new investor, looking at properties in the Quantico, Virginia area and requesting feedback.

If you came to me and were interested in a city like Norfolk, VA.

DC and Northern VA are a different animal due to a very well paid workforce funded by our tax dollars.

One son is in San Diego, the other in eastern Virginia, so I am interested in both markets. 

I have been a realtor in the VA / DC area for about 2 years, and I see unlimited potential in learning about this side of the business.