If it's cash flow, you're very unlikely to achieve that in Olympia, operating from afar and buying single fam (certainly not townhouses) in the 200k range.You may cashflow slightly in other areas, as @Dawn Young mentioned (Yakima, Tri-Cities, Spokane) but again, operating from afar, your returns are likely to be <8% cash on cash.It's been 11 years since you left WA state...unless you have inside tracks to property managers, contractors or reliable people on the ground, you're essentially starting from scratch.  

Essentially that phrase is saying that real estate investing is pretty predictable once you get your head wrapped around it.

Maybe I am misinterpreting the Tax rule here, but does it essentially mean (on newer properties) your first 10K is essentially tax free?

The 100K borrowed is essentially 100K you withdrew from equity which was already yours.The flaw in your thesis is interest.  

Building on what we already know is essential.

It is similar to a credit card that is why it's a "consumer" product as it essentially is a big credit card except... it's secured by your house ha. 

Now I have top soil which is 1/3rd sand essentially 6"-1' all around the new poly line - some peace of mind for me, personally.

Essentially, you're looking to trade your current situation for a materially lower cost situation.

http://www.benefits.va.gov/warms/pam26_7.aspThis is the regulation that essentially governs how sponsored-lenders will authorize use of the VA loan.

So essentially you got a quote that was 20% more than you expected?