I truly believe it would sell for $120K if not more when it is fixed up.Since the property is so close to the university here, it will make an excellent buy and hold rental investment. 

We will be selling the house because my mom is so frustrated with the situation.

Another thing about five mile is that the city limit line cuts across it, but I have heard from friends who live there that there isn't 100% agreement as to where exactly the division is. So

 @Chelsea Tustison:That is so awesome!!!

Down payment $83K*0.25 = $20,750.That's completely false but again it could be right if in that originators area the va limit is 417k so he may through you were talking about 1 unit properties where the loan limit is 417 (conforming loan limit).Loan limits for VA got simplized in 2015 to whatever the high loan balance of that county is so for instance the one unit max for va in San Diego is 562,350 and it goes up from there to a max of four units va does not do 5 unit Multifamily Atleast in the residential va program.The part about 25% of the difference is correct if you're going over the limit however the "limit," per county is different in ever county.

It is SO worth it!!

It seems an investor could just do this themselves with 20% down and buy their own property without this structure involved.I am not really getting what is so great about the price, term, program, etc. 

The market in San Jose and surrounding areas is so hot that there's no point in trying methods like that.

Well since the Boston market is so high it's nearly impossible to find the right place for the right cash flow. 

The term "motivated seller" is so broad that it includes mostly real estate investors trying to sell a 20k house they bought for 10k to make a quick buck or some dilapidated house that needs 40k in repairs.