Based on my limited experience of this I was thinking the down payment was a little low and the interest rate was a little low.

I have found low dollar works better than high dollar houses.  

As a part of our construction, we had several inspections and they signed off that we have complied with all laws required for single family residences  - the extra kitchen does not have an additional heating source (stove), all spaces are connected on the interior, and we have a single electric & water meter. 

HELOC is one of the best thing you can do with low apr. ttry wells fargo they give 60% ltv

I think the expense figures are too low - why only 3% for property management?

The VA loan is very low down payment (highest mortgage amount possible) and you have to owner occupy, right?

There is a Lowe's just a couple miles from the property.

We are still in historical low interest rate.

Just as a side note, the stovetop pizza makers use baking stones on the interior to hold heat better and radiate it back out to the food. 

On top of that the rest of the neighborhood's comps are going to drag down the price so low that you'll likely end up with more money into the renovation than the property appraises for.