Unfortunately he had horrible life threatening health conditions that took his life in 2020, but his biggest wishes he talked about before he passed were that his kids and grandkids be well taken care of and that they always have a place to live and lastly since I was taking my real estate classes required to obtain your realtor license at the time, he said to me "Kelly, I want you to sell my house when you all are ready and only you can be the realtor on it, only you, you're in charge of that, ok?"

Meaning, if permits are required, you would need to obtain permits and convert the attic space per local building requirements and standards.

The Law on Occupancy The law requires a veteran obtaining a VA-guaranteed loan to certify that he or she intends to personally occupy the property as his or her home.

If your client has remaining entitlement, they may be able to purchase another 1-4 unit property using that remaining entitlement (as long as it will be used as their primary residence).Your client’s VA Loan Certificate of Eligibility (COE) is the definitive way to determine if they have remaining VA loan entitlement.

It’s a long game and anyone can obtain a great amount of wealth through it but it does take time.

My 3 thoughts would be A) seller carry the remaining portion or B) do a lease option or C)have your buyer obtain cash by pulling money out of another property through a refi or HELOC to then purchase the property.That would avoid any lending institutions. 

Unfortunately he had horrible life threatening health conditions that took his life in 2020, but his biggest wishes he talked about before he passed were that his kids and grandkids be well taken care of and that they always have a place to live and lastly since I was taking my real estate classes required to obtain your realtor license at the time, he said to me "Kelly, I want you to sell my house when you all are ready and only you can be the realtor on it, only you, you're in charge of that, ok?"

Quote from @Chad Harris: Your offer to purchase should include a requirement that the Seller provide all documentation and agree to sign an estoppel certificate (also called estoppel form or agreement).

You've posted gross, but not net incomes, and values are based on NOI. 40% vacancy is incredibly high, any buyer will have a difficult time obtaining bank financing.Stockton is also a small market, so the potential buyer pool will be pretty limited. 

Hello BiggerPockets Family, Day 5 here and consistently pursuing our Real Estate Investment Journey.As with anything in life that is worth achieving or obtaining, learning the skills necessary to achieve that successis a must.