I am looking to use a VA loan to get a house but want to purchase a rental property and get started on getting cashflow.

Looking at my first property and there is a severely intense odor in the basement (concrete) and some slight orders on the other levels of the house as well (hardwood floors and carpet).

Investigate government programs such as HUD, USDA, and FHA loans, select investment techniques such as house hacking, turnkey homes, or purchase and hold, and assess properties using tools such as Grants.gov, HUD.gov, and BiggerPockets.Good luck!

Now they are screwed - every time they fill out an application, for their next rental, to buy anything on credit (like a car) or buying a house...this Judgement will pop up and they will be denied.

Worst house in neighborhood.

Seattle has become more lenient on ADU regulations because of the housing shortage. 

Also if you have not yet, I would recommend that you start by house hacking a 2-4 unit first

A few things that jump out at me, in addition to @Don Konipol Comments…-$1,500/yr for insurance on 8 houses (less than $200 each)?

I'm a house hacker doing STR through airbnb in NW Raleigh.

I was only able to do this because I had the numbers to support (similar housing rents, increase in expenses) that it was a reasonable raise in rent.