They look at the zipcode for locational parameters, which back fired on this property because we were on the west end of a zipcode and values typically go down heading east (and there was a freeway dividing east and west in that zipcode), so we were "pulled down" by "comps" east of that freeway.

I reference interest rate rises and the associated rent increases as my rationale for my belief. 

Local REALTORS association?

The house is headed for foreclosure (and auction) and my thinking is that I can get ahead of this and bring the mortgages current contingent on a purchase contract signed by him if he gains executorship.

If you don't qualify through military connections, you can join one of the designated military support associations to qualify.

I'm heading back to the US soon, but happy to connect/keep in touch in case you have any questions while in Japan.

Initially it seemed using the FHA for my first buy and VA for the second seemed like a good idea but with the PMI and other fee's associated your suggestion of going VA is what I will very likely use.

I don't know what the timeline would be on this-- likely at least 2 years after moving into the SFH.Thanks for your inputs, I'm hoping that by thinking of the options now I'll have a better idea of where I want to head when the time comes.

Everyone thinks it's so hard well 90% of that is in your own head. 

I'm a longtime valley resident and Associate Broker with HomeSmart.