I don't want to carry a note forever (love the idea of the income, but I need the cash for other projects), but I'm willing to do it for a year or two.This seems like a puzzle to me - all the pieces are on the table, I just can't see how to fit them all together to complete the task.

Research which have the highest rates of homeownership (vs rental) and the average home values that fit your program.

I made the mistake earlier of choosing a structure first, then trying to fit what I was doing into it - no bueno. 

It's the fit that matters.So be careful about generalizations. 

@Jessica Geisler as a wholesaler, part of the job is walking through the property and people will follow you.

All are good options but this VA loan might be the perfect fit for your specific situation. 

There is no need for you to argue with your tenant - perhaps he is not a good fit or wasn't vetted right. 

As we walked through the property, we noticed that this "duplex" was indeed built as a four-plex.

If it were my client these are the considerations I'd be walking the borrower through:- calculate the new higher HELOC payment after you used those funds for your new VA purchase (to bring in the portion required by the VA to purchase or pay down as you call it).

Most people know when they are caught and will walk away.Another option is to ask them back into the office for something.