I really like Dalhousie, it is close to the train line and there is a good mix of older and newer houses so you can find deals and the neighborhood is desirable, plus it is significantly cheeper than the closer neighborhoods.

Sounds like you and your partner have a good mix of skills and the "get rich slow" mindset is the best way to approach real estate investment. 

I would also take a mix of medicare but private pay to optimize returns.

Lots of mixed advice in this thread.First, I'm almost positive that you have to live in the property with the VA loan as your primary residence for at least one year.

In 2003 I bought a rural (1200 people) 1906 10 unit mixed-use building dirt cheap (14 cap) directly from the main bank in town as an REO. 

If all 10 units are in the same building, you may want to mix it up a bit and have two options for flooring and paint that you can mix and match so all of the units are not identical.

Don't mix business and friendship.

State law in regards to real property, county use changes (Commercial allowed to have an ice cream shop or does that require a mixed use?).

Purchase price: $15,000,000 Cash invested: $4,000,000The BoMoSo Design Philosophy Formula applied to Mixed UseThis video give a good overview

There is no market that checks all the boxes and stands out above the rest so I always suggest mixing in just a tad of subjectivity in there to choose between the final markets.