Except the extra 8% return... 

If you can offset most of the cost (or all of it) by "house hacking" you can save up that extra money for the next investment.In your case since you've already saved up almost a 20% down payment you could use those extra funds on another deal quickly. 

So, you need to be paying extra on your two loans so the outstanding balance on your loans is always below the outstanding balance on the buyer's loan. 

We just welcomed our first child into this world this past March and we would love to teach him that traditional ways of earning money are not necessarily the best ways of earning money.We're looking forward to connecting with others and hopefully adding value where we can.

It definitely takes an extra layer of communication and trust on both sides... if you invest out of state, make sure you get some client referrals and ask for pics/videos of your properties during turns and rehabs.

Again, a little extra work but final product is great. 

The VA loan also seems to have extra stipulations regarding when we are allowed to refinance.

@Amy Thompson, The qualified Intermediary is an extra piece that has to be in place in addition to the regular title company or attorney closing the property. 

Most attorneys will settle a transaction as part of their fee, but even if they charge a few hundred extra, the title company charges just as much typically for settling, so you're just moving that fee to another part of your settlement statement.

If I’m making any idiotic assumptions please call me out. 1.Sell our current house for 550k (purchase price 325K) lose 50k to 75k to fees and taxes and start with a down payment of around 200k. 2.Purchase a multifamily unit with the with the sale earnings from our first place.