Lastly my expectation is not for the VA to be an acquisition specialist and get the property under contract, however I would like for them to be able to gather as much information as possible (motivation, timeline, condition, asking price) and work on not being robotic on the phones.

I don’t see any negative impact of leaving her off the lease, but wondering if there’s something I don’t know.?

All depends on the acquisition price .

@Mary Joe in most states, a property tax reassessment chases market value.So, if you do the 2nd transfer soon after the first, the impact on property tax amount should be minimal.

Right now I know the interest rate is high and all.

YOu'll have high turn over with a lot of repairs each time. 

In times such as this with high interest rates, or to have a competative offer, you might offer all cash at a lower price with a short closing time frame to a seller in order to get a good deal.

(I'm worried that my sisters lower credit score will negatively impact interest rates)Purchase the house outright for $160K , pay off the note, wait 6 months seasoning period and take a HELOC out for AUD.

Anything higher is a harsh, uncomfortable blue light that feels like high noon to our brain).  

I live in NC, I'm 41, my wife is a high W2 earner, and we don't plan on touching this money for 12-15 years.