To use the VA loan to purchase a single family home would require us to move once again which is costly, not to mention it would be the sixth time in 3 years for out family.

All of the negatives you mention are red lines for me.

That's what I mentioned.

With no income...just cost.How many months would it take to recover $60k...which is what you need to do before you show any profit...and before you mention appreciation, you get the same appreciation whether you pay this way or the minimum.At $18k/y cf (after payoff), it will take you over 3 additional years before you start making a profit...that's actually close to 8 years from when you start the early payoff.B - If you put 20% down (about $24k), that was cash, and you had positive cf (on average) for the full term (let's say 20 more years), the cost of this property to you was $24k.If you had $500 positive CF without doing this early payoff, or $6k/year, you would have broken even at the end of year 4...and you would be profiting.Let the tenant buy the house for you. 

But, don't forget if you do let him go, look at his completed work and see if he is willing to provide a guarantee or warranty.I will be remiss if I do not mention that this situation can get quite complicated.

Secondly, he mentions that he does forced appreciation on those deals in year 1 to boost the value of the house by 10%. 

As Joe mentioned, it’s called a cash out refi.

The first was J Scott’s book on cost estimating, and the second was Paul Rsajain’s book “Real Estate Rehab Investing Bible”.

I have a flip in West Mt Airy right now and was continuing to look in the area you mentioned as well. 

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