He's very concerned the state could take it away and because this land was his parent's land, now his, and he wants it to become ours and later our son's, he's very concerned modern laws will stop this. 

The banks ive been to all tell me that "the co-borrower must occupy the house" which doesnt make a whole lot of since to me.

An example would be if our LLC bought a property for 750K and borrowed 600K.

I've been aware of the strategy of using your 401k to borrow money from to buy real estate for some time now.

There is NO source available to anyone for current balance information outside of the servicer and borrower (Even the trustee/attorney only knows the reported debt amount).

I would add that the strategy of bidding lower than total debt has been successfully challenged in many districts if the servicer goes after the borrower for a deficiency later.

The last time I analyzed a deal in Dallas, the projected market rent was too low, and I stopped searching there.

If this is the case the loan amount will be similar to what you borrowed with the VA. 

I'm surprised your profile doesn't indicate where you live / want to invest].My question is: have you bought your primary yet (and have borrowable equity)?

Luke Redford I stopped looking in 2012 in seattle and went to the mid west.