Depending on your disability status and the down payment required, the VA loan might still be the best option over a conventional.

@Mason Haley As long as you and your wife do not have REP status AND you materially participate in the real estate business, you can only deduct up to $25,000 in passive losses against your W2 income.

For example, "impossible" would be the case if you have a full-time W2 job.Assuming that you do qualify for the REP status, you may think about your cost segregation losses as an offset against your stock gains.

HB 2550 B Staff Measure Summary writes, "The federal Fair Housing Act prohibits discrimination in housing-related transactions based on a person’s race,color, national origin, religion, sex, familial status, or physical or mental disability.

Real estate professional status (deduct losses on active income), Cost Segregation/Accelerated/bonus depreciation (most likely not an advantage on one property unless its 350k+).

It is your security blanketthat will insure your millionaire wealth status long term no matter how much you might screw up in the future. 

Perhaps part of your offer includes getting the legal status filed to permanent (need photos to advise, to file you need the manufacturer name, serial number (like a DMV tag in the water heater area usually), pay the fee, have county stamp it and it's recorded. 

Most 1031 money looking at TIC or DST model and generally must be accredited status.

To us it seems like he wants to keep the status quo, and not get increased rent.

Or maybe you want to get RE Pro status?